Wealth Planning Case Study

To offer you an insight into the value of our Wealth Management services, please take a look at the example below of our client case study and see the benefits that this has delivered.

Naturally, due to client confidentiality, we have anonymised this, however this is a genuine case study.

Basic background

  • Initial meeting with potential clients who had been referred from existing long-standing clients of Chewton Wealth Management.
  • Mr X, was fully retired and Mrs X was still working on a part-time basis.
  • Existing pensions were held by both clients. Some of which were crystallised in Flexi Drawdown or Drawdown and some uncrystallised Personal Pensions.
  • Clients held a portfolio of ISA’s (both cash and stocks and share) and also cash savings accounts with a number of providers.
  • Clients had no knowledge of IHT liability or implications.
  • Clients had a Will in place with their Estate passing to their two grown-up children at time of the second death.

Objectives/issues identified

  • Clients currently did not have a co-ordinated approach to their various assets.
  • Clients held a significant value in their pension funds but were not receiving any on-going advice or service from their existing providers and hadn’t for quite some time.
  • Clients had no real sense of investment performance or underlying funds. Limited knowledge of options relevant to pensions death benefits and their status in relation to IHT etc.
  • Substantial capital was held in savings accounts and Cash ISAs. Some accounts paying only 0.25% interest or less.
  • Clients were unaware that Cash ISAs could be transferred into Stocks & Shares ISA’s without impacting current ISA Allowances. As with pension funds, no advice being received on existing Stocks & Shares ISA along with no monitoring of fund performance.
  • Due to gross value of the clients Estate, a significant IHT liability would have been created at the time of the second death to then be borne by their two children.

Next steps

  • Clients provided us with the necessary authority to contact all relevant existing providers so that specific contract information could be obtained and analysed.
  • Investment performance statistics researched and prepared for clients.
  • Detailed analysis of inheritance tax liability compiled.

Agreed actions

  • Both clients respective pension funds were transferred away from existing providers.
  • Bespoke fund portfolio created for each client to match their risk profile and investment time horizon.
  • New Trust created to ensure proper earmarking of benefits.
  • Respective existing Stocks & Shares ISAs transferred from existing providers and as with pensions, bespoke portfolios were created.
  • Full tax year allowance stocks and shares ISA implemented for the current financial year. This was achieved by consolidating accounts with a very poor interest rates.

Inheritance Tax

As with many clients this can be a challenging and problematic area of planning if you do not satisfactorily address.

The clients felt that they were too young to gift away capital at this stage. They quite rightly wanted to ensure that their own financial freedom and security was not jeopardised. However, they also were highly motivated to ensure that children were not burdened with writing out a significant cheque to HMRC for death duties.


  • We established a life insurance policy for the clients.
  • The sum assured or death benefit was equal to the IHT liability.
  • The policy is written under trust.
  • The beneficiaries under the trust were the clients two children.
  • At the time of the second death the sum assured is paid to the children who then use the proceeds to pay the tax bill.
  • The children are then able to benefit and have full council over their parents estate.


  • Clients now have a coordinated, structured and joined-up approach to their financial assets.
  • Their investments and pensions and now invested in such a way as to accurately reflect their individual risk profiles and provide a diverse, global portfolio of underlying funds.
  • The clients IHT liability has been covered with the established insurance policy.
  • Clients now benefit from regular information and communications and twice yearly face to face meetings with their Adviser at Chewton Wealth Management.

The advice provided was given after a full evaluation of Mr & Mrs X’s specific needs, circumstances and requirements. The solutions provided may not be suitable for everyone and the information provided here does not constitute advice.

The value of an investment with St. James’s Place will be directly linked to the performance of the funds you select and the value can therefore go down as well as up. You may get back less than you invested.

The levels and bases of taxation and reliefs from taxation can change at any time and are generally dependent on individual circumstances.

Will writing involves the referral to a service that is separate and distinct to those offered by St James’s Place and along with Trusts are not regulated by the Financial Conduct Authority.

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