Estate Planning Guide

He realises he will need to draw on his investments and decides to move to Growth with Access. This provides him with greater liquidity to access the funds when required, either by way of ad hoc withdrawals or fixed regular payments. BR: Accommodating Uncertainty Andrew, 57, knows that our cognitive and decision-making facilities tend to decline as we age. He wants to start estate planning now so that he can pass on as much as possible to his two daughters, Claire and Clarissa. But, he is worried about gifting them too much money now and then running out of funds in later life. He would also like to continue growing his wealth for as long as possible but, having considered BR investments in the past, is concerned that an investment of this nature may not be able to deliver the real returns that he is seeking. At 75, his health deteriorates and he is aware that he will shortly need to enter into care and his expenditure will increase to a level that cannot be supported by his continuing income. Andrew invests in the Oxford Capital Estate Planning Service (EPS). The EPS invests subscriptions in shares which should qualify for Business Relief (BR). EPS has three options - Growth with Return, Growth with Access and Income – Investors can combine and switch between the options. Andrew chooses Growth with Return which targets growth of 5% p.a. His eldest daughter Claire gets married and he requires a lump sum to pay for the wedding. His other daughter Clarissa is due to get married the following year As he is aware of the dates of the events in advance, he is able to give sufficient notice to make two ad hoc lump sum withdrawals in plenty of time to cover the costs. Andrew retires at 65. He switches to Income to supplement his pension with a 4% p.a. dividend (paid quarterly). Growth with return Growth with access Income EPS Investing and care fees Chris, 81, and his son David, 52, have just sold the family business for £10m, receiving £5m each. Both have significant IHT liabilities. Chris wishes to pass on as much of his proceeds as possible to his three children. He has no desire to run another business but understands the value of BR. The example is for illustrative purposes only. The value of an investment may go down as well as up and investors may not get back the full amount invested. Tax treatment depends on the individual circumstances of each client and may be subject to change in future. Disclaimer The Estate Planning Service invests in unquoted securities. Capital is at risk. Tax treatment depends on an individual’s circumstances and may be subject to change in the future. 75 CASE STUDIES Chris wants to protect real value but is not concerned about growth. He would like to be able to readily draw funds if he needs care. IEP Care is a discretionary investment management service that enables Chris to get immediate IHT exemption via replacement BR. He also gains free access to leading care advisers Grace Consulting. IEP Care targets a return of 3-5% per annum net of fees and allows Chris to drawdown the growth generated by his investment annually. David wants to make his money work but also has an eye on starting another business in 3-4 years’ time with his son. He may want to use the money to invest in this business. IEP Private allows David to choose which trading activities his money is invested in and he can therefore allocate to those with higher growth potential. business IEP Care BR INVESTMENTS IEP Private provides immediate IHT exemption due to replacement BR and comes with the added bonus of enhanced liquidity, meaning David can access his money should he wish to start a new business. new business 3-4 years Growth with access