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Principal: D Woodruff. Woodruff Financial Planning is Authorised and Regulated by the Financial Services Authority. This document is for information only, and does not constitute financial advice. This document is aimed at United Kingdom residents only. © Woodruff Financial Planning. No unauthorised reproduction is permitted without prior consent. Case Study Trustee Investment Summary: We developed a comprehensive financial plan for a trust, which satisfied the trustees’ need to diversify assets and look after the interests of the beneficiaries in a tax efficient manner. Background: Following a referral from a local solicitor, we were introduced to the trustees of a newly created trust. The trust had been set up following the death of the father of two of the trustees and the third trustee was a friend of the family. The solicitor was advising the trust on the legal aspects of their duties and their inheritance tax position but was unable to give financial advice. The trust had been set up for the benefit of various family members and the trustees required advice on how best to fulfil their responsibilities to look after the interests of the different categories of beneficiaries. Problems/Challenges: The Trustee Act 2000 sets out a number of duties and responsibilities for trustees such as the duty to diversify assets, take professional advice and look after the interests of beneficiaries. Since the Trust had complex aims, the trustees needed advice on the most appropriate product and investment strategy for the trust money. The trust needed to balance the need for income of some beneficiaries while securing the future capital for others. They also needed to keep the trust money invested in a diversified way to generate the best long-term returns for the trust. As part of this an ongoing review was necessary. Our approach: We met with the trustees and the solicitor to establish the aims of the trust and the strategy for investment. We developed a financial plan for the trust, building on assumptions made about investment growth, income taken and the effect of tax such as inheritance tax. This gave the trustees an overview as to how the trust investment should develop over time. Following this, we established a risk profile for the Trust and built a portfolio of investments to aim to generate an acceptable level of income whilst growing the capital. As part of this we recommended an investment vehicle to deal with the tax position of the trust whilst giving maximum flexibility. Outcomes and Impact: By working with the solicitor we were able to create a unified approach so that advice was consistent on the legal and financial sides. We were also able to refer the trust to a local specialist accountant, who could advise them on their requirements to liaise with the Revenue. The trustees were able to satisfy their duties to look after the interests of the beneficiaries by taking specialist financial advice and diversifying the portfolio. Because we created regular reports for the trustees they were able to demonstrate their compliance with their duties, meaning that they were less likely to come into conflict with the beneficiaries at a later date. Continuing Support: Each year we schedule two reviews with the trustees. The first will be to re-evaluate the trust’s financial situation and revise its financial plan so that we can take into account any changes to its circumstances and re-assess whether it remains on target to meet its long-term goals. The second meeting reviews the trust’s investment portfolio and aims to keep it on track towards its goals while taking the least risk needed to do so. Please contact us for further details: Woodruff Financial Planning The Colchester Centre, Hawkins Road, Colchester, Essex CO2 8JX. Email: [email protected] Fax: 01206 266885 Tel: 01206 266882 www.woodruff-fp.co.uk

Trustee investment

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Principal: D Woodruff. Woodruff Financial Planning is Authorised and Regulated by the Financial Services Authority. This document is forinformation only, and does not constitute financial advice. This document is aimed at United Kingdom residents only.

© Woodruff Financial Planning. No unauthorised reproduction is permitted without prior consent.

Case StudyTrusteeInvestmentSummary:We developed a comprehensive financial plan for atrust, which satisfied the trustees’ need to diversifyassets and look after the interests of the beneficiaries ina tax efficient manner.

Background:Following a referral from a local solicitor, we wereintroduced to the trustees of a newly created trust. Thetrust had been set up following the death of the father oftwo of the trustees and the third trustee was a friend ofthe family. The solicitor was advising the trust on thelegal aspects of their duties and their inheritance taxposition but was unable to give financial advice. Thetrust had been set up for the benefit of various familymembers and the trustees required advice on how bestto fulfil their responsibilities to look after the interests ofthe different categories of beneficiaries.

Problems/Challenges:The Trustee Act 2000 sets out a number of duties andresponsibilities for trustees such as the duty to diversifyassets, take professional advice and look after theinterests of beneficiaries. Since the Trust had complexaims, the trustees needed advice on the mostappropriate product and investment strategy for thetrust money.

The trust needed to balance the need for income ofsome beneficiaries while securing the future capital forothers.

They also needed to keep the trust money invested in adiversified way to generate the best long-term returnsfor the trust. As part of this an ongoing review wasnecessary.

Our approach:We met with the trustees and the solicitor to establishthe aims of the trust and the strategy for investment.

We developed a financial plan for the trust, building onassumptions made about investment growth, incometaken and the effect of tax such as inheritance tax. Thisgave the trustees an overview as to how the trustinvestment should develop over time.

Following this, we established a risk profile for the Trustand built a portfolio of investments to aim to generate anacceptable level of income whilst growing the capital. Aspart of this we recommended an investment vehicle todeal with the tax position of the trust whilst givingmaximum flexibility.

Outcomes and Impact:By working with the solicitor we were able to create aunified approach so that advice was consistent on thelegal and financial sides. We were also able to refer thetrust to a local specialist accountant, who could advisethem on their requirements to liaise with the Revenue.

The trustees were able to satisfy their duties to look afterthe interests of the beneficiaries by taking specialistfinancial advice and diversifying the portfolio. Becausewe created regular reports for the trustees they were ableto demonstrate their compliance with their duties,meaning that they were less likely to come into conflictwith the beneficiaries at a later date.

Continuing Support:Each year we schedule two reviews with the trustees.The first will be to re-evaluate the trust’s financial situationand revise its financial plan so that we can take intoaccount any changes to its circumstances and re-assesswhether it remains on target to meet its long-term goals.

The second meeting reviews the trust’s investmentportfolio and aims to keep it on track towards its goalswhile taking the least risk needed to do so.

Please contact usfor further details:

Woodruff Financial PlanningThe Colchester Centre, Hawkins Road,Colchester, Essex CO2 8JX.Email: [email protected]: 01206 266885

Tel: 01206 266882www.woodruff-fp.co.uk