When our clients inherited their mother’s trust, they each had different priorities for managing the funds. With our guidance, they found a balanced strategy that respects their unique goals while preserving and growing their family’s legacy.
Background
Our clients, three siblings in their late 50s to early 60s, recently inherited a substantial family trust following the passing of their mother. As each sibling was at a different stage of life, their priorities for the trust varied: one was interested in using part of the funds for a property investment, another wanted to support educational plans for their children, and the other was focused on building a secure reserve for unforeseen expenses. While the family was united in honouring their mother’s legacy, they recognised the need for expert guidance to ensure that the trust could meet their unique, evolving goals.
Key Needs
The siblings’ primary objective was to maintain the trust’s value while supporting their individual financial needs. They wanted a plan that would offer both growth potential and flexibility, allowing them to access funds as needed without disrupting the trust’s long-term sustainability. With various goals in mind, the family needed a cohesive investment strategy that aligned with each member’s requirements. They were also concerned about tax efficiency, hoping to minimise their tax burden on any withdrawals.
Our Solution
We began by holding individual meetings with each sibling to gain a clear understanding of their financial goals and risk tolerance. Based on this, we crafted a comprehensive investment strategy that balanced growth and liquidity. To provide immediate access for the eldest sibling’s property investment goals, we designated a portion of the trust to liquid, low-risk investments. For the other two siblings, we invested in a diversified portfolio with a focus on sustainable growth.
We also created a tax-efficient withdrawal plan, allowing them to access funds when needed without facing unnecessary tax implications. We ran various tax strategies and cashflow forecasts, which provided the siblings with a long-term financial outlook, helping them visualise how the trust could support their future needs. Additionally, we scheduled regular family reviews, ensuring the strategy remains aligned with any changes in their lives or in tax regulations.
Today, the siblings have peace of mind knowing that their mother’s legacy is managed in a way that respects each of their needs, balancing security with flexibility, and empowering them to move forward with confidence.