Client stories

Preparing the next generation to deal with complex investment issues

The Jones family own several Care homes in the South of England. They are very keen to ensure that their young adult children will have the financial skills and a team behind them that will help them to grow the business. The family net worth is in excess of £30m. Their planning at the time was rather fragmented and their existing advisers were not consulting with each other or sharing knowledge, leading to difficulties in achieving long-term goals.

What were the family's main goals?

  • To ensure that the family had a vision for their wealth.
  • To ensure that all family members views were respected.
  • To develop a round table of trusted multi disciplined advisers.
  • To have an asset protection team.
  • To ensure that financial education is ongoing.
  • To have a financial plan that would filter through to the next generation.
  • To encourage philanthropy in the family.
  • They had outgrown their existing financial adviser and felt that they needed a firm that could deal with more complex financial issues.
  • The clients wanted a financial planning firm that was more family orientated and less corporate, and demanded a relationship-based service.

How did AMG add value?

  • We introduced the family to the concept of family wealth management.
  • We met with the senior family members initially and then formed relationships with the next generation.
  • Our planning was synchronised with tax and legal planning.
  • We put them in touch with a family solicitor and conducted a family law audit.
  • We engaged with their tax advisers and ensured there were regular meetings between us all bi-annually.
  • We created intelligent strategies to deal with inheritance tax.

Outcomes

  • We are the family's trusted advisers.
  • We have a formal training programme for the children, and a legacy plan that everyone understands.
  • The family understands what to do if another family member passes away.
  • They have a dedicated team of trusted advisers that help the family and at the same time those advisers are accountable to each other.
  • They have a robust investment strategy which diversifies them away from their business.
  • We have saved the family a significant amount of income and inheritance tax annually.

The value of an investment with St. James's Place will be directly linked to the performance of the funds you select and the value can therefore go down as well as up. You may get back less than you invested.

The levels and bases of taxation, and reliefs from taxation, can change at any time. The value of any tax relief depends on individual circumstances.

Disclaimer: all scenarios are based on real life events however to protect client identities all names, locations and occupations have been replaced with pseudonyms.

The examples, figures and information given here are specific to this particular case study and the client's unique circumstances, therefore this example cannot be extrapolated to wider clients or other circumstances. This is a standalone example; it is not intended to be advice and provides an example of the support an adviser may be able to offer.