IFA of the year 2010: Competition heats up at midpoint

Published on Wednesday 1 September 2010 14:21

Case Study: Chris and Fiona Anderson

CHRIS Anderson is a self-employed retailer who runs a small chain of fashion boutiques. His wife, Fiona is a newly-appointed partner in an Edinburgh-based law firm.

They are both in their mid-30s and have no children. Unfortunately, after a short illness, Chris' mother died. She left her estate to Chris, who is an only child. To his surprise, the net estate after paying the inheritance tax liability was valued in excess of 1.25 million.

Now that Mrs Anderson's estate has been confirmed, Chris and Fiona have decided to clear the outstanding mortgage on their Edinburgh property – circa 250,000 – and buy a small flat in the South of France for 150,000. A further 450,000 has been set aside for a future business development and another 100,000 has been placed in two separate high- interest deposit accounts.

Chris' late father always took an active interest in the stock market and Chris is keen to do the same but, because of his limited knowledge of financial matters, he is seeking the services of a professional independent financial adviser, who can advise him on tax and investments.

Chris and Fiona have discussed their financial future at length and have decided to commit a minimum of 300,000 to an investment portfolio.

The couple have decided to take a speculative/growth approach with this investment and are prepared to invest their funds for at least a five to ten-year period.

They are both determined to ensure that their nominated beneficiaries will not have to pay any inheritance tax on any part of their estate.