Consolidating investments – Colin and Kate

Background

Colin and Kate had a portfolio of investment bonds held in a sole name that were providing their income in retirement.

The bonds were performing well and had provided growth as well as income. Unfortunately, this growth was leading to a potentially significant tax charge arising in the future, in region of £70,000 and growing, either upon the policy holder’s death or when the bonds matured.

What did we do?

We assigned the bonds to be jointly owned, in order to lower the chance of death causing a tax charge to be triggered. This would also allow Colin and Kate to withdraw money more tax-efficiently.

We then carefully surrendered the bonds in segments over a number of years, in order to avoid a tax charge arising.

We also made full use of the clients’ ISA and pension contributions over this time, as well as fully utilising their capital gains tax allowances to maximise their tax efficiency.

The results

Colin and Kate no longer have to worry about future tax charges building up. They also have a more tax-efficient portfolio and easier access to it.

The portfolio is now evenly split between them; should something happen to one of them, the other will have access to money until the estate has been sorted.

In addition, by finding a provider that allows families to link their investments together, we were able to bring their daughters’ investments into the same charging structure thereby securing very competitive charges for them all.

Please note

The value of your investment can go down as well as up and you may not get back the full amount you invested.

Levels, bases of and reliefs from taxation may be subject to change and their value depends on the individual circumstances of the investor.

What do our clients have to say?

I have been a client of Taylor McGill Financial Services since 2014. At that time, I had a number of annuity style pensions, both private and company, which I wanted to transfer into a single drawdown facility. Daniel contacted the trustees of the funds to expedite a speedy and cost-effective reassignment and professionally dealt with the significant red tape required to do so very effectively. Since then I have retired and have found Daniel is always very prompt and attentive when I require funds. I find our regular meetings very informative, both in terms of aligning my drawdowns to my specific requirements but also in terms of understanding tax-efficient vehicles for future investments. All in all, I have found Taylor McGill and Daniel Taylor in particular, very professional and easy to work with. I am very happy to be their customer. Sean, Ravenshead A client since 2013
On my retirement, over ten years ago, my lump sum was invested in a low-risk portfolio which had been making satisfactory gains but was not actively managed. I have no aptitude for picking stocks and shares, but I need to feel that the right decisions are being made in regard to the placing of my financial resources. Recently I became the beneficiary of a bequest in the form of a percentage of a pension pot. I had no idea as to how to proceed with this sum and the legalities which attached to it. Daniel Taylor of Taylor McGill provided all the information I needed to make choices and guided me through the steps needed for the transfer of funds, taking note of my attitude to risk. Also, at my request, he examined my original portfolio and made sure that it will be held in a tax-free ISA. Throughout these meetings, he had relevant information at his fingertips and was able to answer my queries, either then or later, online. I am very satisfied with the service I received. Barbara, Suffolk A client since 2017
We have been using Taylor McGill as our financial advisers for approximately thirty years. Originally it was Simon who provided the advice, and latterly his son Daniel has taken over our portfolio. We have sought advice on pensions, ISAs and other financial transactions. We have always been more than satisfied with the advice received and have recommended them to several of our friends and colleagues. Being a small, family firm, we are seen by the same person each time, whether this be for our annual review or on any occasion when a need or query has arisen. We know the partners very well and we’re very grateful that we do not have to endure constant changes in personnel. They are always readily available, and we like the personal touch. Terence and Mollie, Nottinghamshire A client since 1991
I have been trading with Taylor McGill since the mid-1980s and continue to be very comfortable with their business attitude and product recommendations. Initially they took great care and time to understand our business, its structure and needs. Not only do I get first-class service from Taylor McGill, but over the years they have constantly monitored (and moved, if necessary) my investments and pensions as new legislation requires in an ever-changing market place. Steve, Leicestershire A client since 1991

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