Case Studies
Here is how we’ve helped…
Case study 1
Mrs Y approached me for advice on her pension sharing order. Mrs Y was extremely nervous and anxious, and was reluctant to give any personal details at first. She was extremely worried about her personal information being made use of, and did not have a mobile phone or any access to the internet.
Over a series of face to face meetings I gained her confidence and was able to offer her advice. Unfortunately, during her marriage she had nothing to do with the household finances and this had left her with a very unrealistic view of budgeting. She had not worked for years and had been wholly dependent on her ex spouse.
I was able to assist with her pension sharing order, and she now has the reassurance that in later life there will be a pot of money to support her in retirement. Although this is some years off she now has a practical framework and a more realistic idea of how she will be able to manage her finances when she has retired. I was also able to encourage her to create an email address which has helped her greatly in her search for employment.
Case study 2
Mr D’s deputy approached me for advice regarding his finances. Mr D is in his seventies. He has learning difficulties and schizophrenia. He lives at home with the support of his live-in carer.
I discovered that Mr D had never claimed his state pension, and arranged for this to be paid. As he had deferred taking his pension for so long this meant that he would now benefit from a higher income. I also encouraged his deputy to apply for attendance allowance, and to look into whether Mr D would qualify for a council tax exemption.
Although Mr D had inherited money from his parents that has been invested, it was clear that due to the cost of his care these funds would be depleted within a few years.
Mr D and his deputy were very worried about this, and were keen that he should be able to continue living in his home. They did not want to consider moving to a care home and selling his residential home to fund his care in the future as they felt that familiar surroundings were an important factor in maintaining Mr D’s mental health. They felt it highly unlikely that the local authority would fund his care which totalled c.£80,000 p.a.
I worked with Mr D’s deputy and an equity release adviser to release funds from his home, and these have been used to purchase an immediate needs care annuity. Mr D’s care expenses will now be paid for throughout his life, his investment and income will cover his living expenses and professional fees.
This was a great outcome for a vulnerable client, enabling his future care to be sustainable.
Case Study 3
John (72) and Susan (53) are married and have a daughter, Mary, aged 4 and son, Oliver, aged 6.
John has been married before and has four adult sons.
Sadly Susan has been diagnosed with early onset Parkinsons disease. She retains mental capacity, however they are aware that the time is approaching when her condition will decline. She is currently still able to drive, but is no longer working.
John is working part time as an IT consultant with an income of c.£60,000. He intends to keep working whilst his health and family circumstances allow. He has no pension having encashed this some years ago to purchase a property in Cornwall which they use as a holiday home.
Susan worked in healthcare and John believes she may have some deferred pensions but neither know any details.
John has POA for Susan, both health and financial affairs, Susan has POA for John.
John and Susan have a will leaving their assets to each other. This was made before they had their children.
They own a property as joint tenants worth c.£1 m, and are planning to sell this and renovate their second property leaving them with c.£700k in cash. John also owns a holiday home in Cornwall valued at £500,000 in his sole name.
John and Susan are keen to make sure that Mary and Oliver are looked after following their deaths.
In discussion with John he had assumed that Susan would pre-decease him, but had not considered what would happen if he were to die first.
We were able to locate Susan’s pensions for her and have been able to give her a forecast of her likely income once she is able to take the benefits. We have arranged life cover for John which has given him the peace of mind to know that he can leave funds to his children.
We have introduced John and Susan to a solicitor as it was important that they revisit their powers of attorney, wills and ownership of their properties to ensure that in the future their family will be protected and their wishes honoured.
Once funds are available from the sale of their property we will invest this with the objective of providing income once John has finished working. It is probable that the holiday home will be sold in the future and funds may be used to mitigate inheritance tax, or to provide for Susan’s care needs.
John and Susan agreed that they felt comforted and reassured that the ongoing support they receive from CB Financial Advisers will help them navigate their finances in the future as their family’s circumstances change.
Case Study 4
Enid (87) and her daughter Anna (57) were living together. Enid has been diagnosed with dementia and after a series of falls she has moved to a care home.
Anna has POA for Enid, both health and financial affairs. Anna gave up her job and retired to move in with her mother and care for her three years ago.
Enid’s property is valued at c.£500,000, she also owns a BTL which is valued at c.£300,000. The rental income has been used to support Enid’s living expenses.
Care fees are estimated to be c.£90,000 a year, Enid’s income is c.£20,000 a year.
Enid has c.£20,000 in cash and Anna has approached the local authority for a means assessment. Ideally she would like to stay in the family home but was concerned that this might not be affordable.
Anna asked us to look at how Enid’s care could be paid for if the Buy to Let property was sold, she was worried that £300,000 would not last long and she did not want to move her mother from her care home. We carried out research and established that after capital gains tax was paid an immediate care needs annuity was affordable.
Once the Buy to Let property was sold the annuity was purchased using the proceeds. This has given Anna and Enid the comfort and peace of mind to know that her care will be paid for as long as she lives, and she will not be obliged to move care homes. Anna will be able to continue to live in the family home, and will pay Enid a rental income.
