Private Client case study

Mazars’ Private Client team offers an innovative approach to planning. The case study below is an actual client example, demonstrating the kinds of issues are asked to assist with…

Mrs B has been divorced for a number of years and works full time.  She has one child who is just finishing university. Her questions to us were:

  • At what age can she afford to retire?
  • Will her pensions be enough to give her a similar lifestyle to now?
  • Can she afford to give her son a lump sum to help him buy a flat?
  • What is her inheritance tax bill likely to be and how will it be paid?

We gathered all the information and, using the lifetime cashflow modelling programme, we were able to tell Mrs B that:

  • She could retire at 65 and afford the same lifestyle as now
  • She can proved a lump sum for her son of £40k
  • At 70, in order to meet her annual expenditure, she will need to deplete some of her assets and at 82 she will have been cash depleted and it is likely she will need to sell investments to generate more cash
  • She will not need to downsize her house – there will be sufficient income to remain
  • If she were to die today, her inheritance tax (IHT) bill would be approximately £2.4m
  • If she lives to 76 this will be £3.6m

Having reassured her about her living and lifestyle concerns, it was obvious that we needed to help her with planning for her IHT position.