How one couple turned a £1.1m tax burden into a legacy of opportunity 

The idea

When Angela and James sat down with us, they weren’t just thinking about numbers. Married and in their early 60s, they had spent decades building a £3.5 million estate. Now, they wanted to ensure their wealth would secure opportunities for their two children and grandchildren − not be diminished by a large inheritance tax (IHT) bill.

But their vision went deeper than estate planning. They wanted their legacy to reflect their values: supporting education, encouraging opportunities, and giving their family a strong foundation for the future.

They had the idea, but what they didn’t have was a plan. Estate planning felt like a maze of jargon and trade-offs. Trusts, gifting, life insurance – where should they start? They needed clarity, confidence, and a strategy that aligned with their goals.

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The challenge

Angela and James faced a stark reality: without action, the full value of their estate after allowances would be subject to IHT at 40%. For their children, that could mean liquidating assets or selling property to cover a £1,140,000 IHT bill – an outcome Angela and James felt was unfair.¹

The couple had three big questions:

• What steps could they take to manage the tax burden?
• How could they balance their own lifestyle needs with their legacy goals?
• What strategies would give them flexibility without sacrificing control?

They needed a tailored solution that would reduce complexity, manage tax exposure, and align with their long-term goals.

Making ideas happen

We began by asking questions that put the couple’s goals at the heart of the conversation:

• What’s most important to you about this wealth?
• How much do you need to support your lifestyle now and in later life?
• Is there a specific amount you’d like to leave for your family?
• Are there causes or opportunities you’d like your legacy to support?

These conversations transformed the way Angela and James saw their wealth. It wasn’t just about pounds and pence – it was about the future they wanted to create.

Together, and working closely with their tax adviser, we modelled their estate and developed a tailored plan that addressed their concerns while bringing their idea to life. This included:

• Managing tax exposure: We recommended utilising annual gifting allowances (£3,000/year per person), monitoring their income and expenditure with the aim of gifting the surplus, and after consulting tax and legal specialists, setting up a discretionary trust using their available nil-rate bands (£325,000 per person) to reduce their taxable estate.
• Providing liquidity for their family: A whole-of-life (WOL) insurance policy, placed in trust, ensured their children would have funds to help them cover IHT and funeral expenses without having to sell assets at unfavourable prices. A key benefit of this approach is that the policy’s value is typically excluded from your taxable estate.
• Supporting future generations: Angela and James settled a discretionary trust and worked with the trustees to be able to guide how their assets were invested and distributed. This provided peace of mind that their money would support meaningful purposes.

The results

Seven years later, the transformation was clear. With proactive planning, Angela and James reduced their projected IHT bill by £267,800.

By lowering their taxable estate from £3,500,000 to £2,808,000 through gifting and the trust, the IHT due on their estate at 40% dropped from £1,140,000 to £863,200 – allowing more of their wealth to stay with their loved ones.²

What’s more, their insurance policy – held in trust to cover the IHT bill – meant their family wouldn’t have to sell property or investments during a difficult time.

But the numbers tell only part of the story. With their needs addressed, Angela and James felt empowered to use their wealth in ways that mattered to them in the present. They helped fund their grandchildren’s education, provided initial funding for their daughter’s new business, and donated to causes close to their hearts.

Their legacy wasn’t just about IHT – it became a story of opportunity, purpose, and impact. They had the idea. We helped them bring it to life with a smarter approach to estate planning.

Next steps

Discover how financial and tax advice could help you manage your estate’s IHT liability and build an estate plan that works for you and your family.

Find out more from our dedicated support team by calling us on 020 7246 1111. Opening hours are Monday to Friday 9am to 5pm – let’s start the conversation today. 

Important information

This case study is based on illustrative scenarios. All figures, tax rates, and thresholds reflect planning assumptions as of September 2025 to demonstrate how advice-led financial planning can help clients achieve their long-term goals. This material is not intended to constitute personal financial or tax advice, or a recommendation to purse a particular strategy. Tax treatment depends on the individual circumstances of each client and may be subject to change in the future. You should always check the tax implications with an accountant or tax specialist. Information contained in this document is believed to be reliable and accurate, but without further investigation cannot be warranted as to accuracy or completeness.

1. HMRC IHT Manual: IHTM04001 ↩︎
2. No growth is assumed for investments, cash, or property to simplify understanding. ↩︎

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The value of investments, and any income from them, can fall and you may get back less than you invested. This does not constitute tax or legal advice. Tax treatment depends on the individual circumstances of each client and may be subject to change in the future. You should always check the tax implications with an accountant or tax specialist. Neither simulated nor actual past performance are reliable indicators of future performance. Information is provided only as an example and is not a recommendation to pursue a particular strategy. Information contained in this document is believed to be reliable and accurate, but without further investigation cannot be warranted as to accuracy or completeness. Forecasts are not a reliable indicator of future performance.