Case Study One

Securing income and avoiding

Inheritance Tax (IHT) for Rose

and William

IHT and wills

Rose and William are in their 70s and have been married for over 50 years.  A couple of years ago, William was diagnosed with dementia, which was a difficult time for the family, and of course especially hard for Rose.  William now lives in a nearby nursing home, where he receives the care he needs and where Rose is able to enjoy spending time with him. These changes had taken their toll on Rose, and she became increasingly concerned about managing the finances. She came to us for help to ensure everything was in place should the worse happen.


Securing income in later life

Both Rose and William receive state and company pensions, but Rose was concerned that if William were to die before her, her income would fall below the level she needs to pay her everyday living expenses, leaving her with a shortfall of over £350 every month. 


Rose, along with her son George, jointly act as William’s Power of Attorney.  They decided that it would be best for Rose to sell the family home and move into a retirement flat, which would be easier for Rose to take care of.  With £200,000 available from the proceeds of selling the family home, Rose asked us to help invest the money to provide an income for her in the future, when required. 


We identified that if William were to die before Rose, she would require around £13,000 a year to cover the lost income which she currently receives from William’s pension.  Rose and William also had a few ISAs and Investment Bonds, which Rose wanted to review to make sure her money was invested in the right way. She was keen to keep her investments together, to make it easier to keep track of everything.  


Avoiding IHT

Rose was also aware that if she or William were to die, they would leave each other with an estate worth just over £600,000, which would be close to the nil rate band of £650,000.  This concerned Rose, as she and William had always wanted to make sure their children, George and Helen, would benefit from any inheritance they would receive. Rose gave us the challenge of finding a way to ensure that her children weren’t faced with any unnecessary inheritance tax problems. 


The solution

After spending time searching what was available, we found a suitable Investment Bond, where the majority of Rose and William’s funds were subsequently invested.  We recommended that this Investment Bond was placed in a Loan Trust, with George and Helen as trustees and beneficiaries of the trust. This solution enables Rose to have access to the money when she needs it.  By placing it into a Loan Trust, any capital growth will be earmarked for the beneficiaries of the trust.  This means any growth would fall outside of Rose’s estate and would therefore be free from inheritance tax (IHT). 






Our Services

Our Independent Financial Advisers offer a comprehensive range of financial services, tailored to your particular requirements. Click on the images below to find out more about the services we provide. 


Enquiry Form
Omni Financial independent financial advisers
Enquiry Form

Terms and Conditions


We will use your name, email address and contact number (‘personal information’) to contact you about the services you have requested or respond to an enquiry you have submitted, which will require us to share your personal information with our advisers and our group of companies. For further information on how your information is used, including disclosure to third parties, how we maintain security of your information and your rights in relation to the information we hold about you, please see our Privacy Policy.


Email communications are not secure and for this reason Omni Financial Ltd cannot guarantee the security of the email, its contents or that it remains virus free once sent.

Omni Financial Ltd

Contact Us


Omni Financial Ltd is authorised by the Financial Conduct Authority.


Omni Financial Limited is Registered in England and Wales under reference 05501958. Registered Office: 1 Townsend Road, Harpenden, Hertfordshire. AL5 4BQ.


Trading Address: 


Omni Financial Ltd

Unit D2, The Courtyard

Alban Park

St Albans




Tel:  01727 223 251

Fax: 01727 853 811

E:     guy.swinnerton@omni-financial.co.uk


The information contained within this website is subject to the UK regulatory regime and is therefore primarily targeted at consumers based in the UK. 

Copyright Omni Financial 2020


Privacy Policy


Site designed by Created by White and managed by Barker Online Marketing

If you require information about the Financial Ombudsman Service you can contact them directly:

0800 0234567  |  www.financial-ombudsman.org.uk