R06 July 2021 Exam - Case study out
What's everyone's thoughts on the case studies?
Case Study 1: Dan & Sara
- Seems pretty standard family one with nothing too out of the ordinary (unless I'm blind to a particular sentence?)
- Additional Fact Find questions seem fairly straight forward (I find filling out my company fact find which I deal with regularly a good way to identify additional questions that may need to be asked.
- Income protection / Family Income Benefit based question perhaps, emphasis on deferred periods perhaps?
- Junior ISAs / Trusts for kids? - bed and ISA the unit trusts
- fund switching the investments to a more balanced approach perhaps (seems like at either high or low risk spectrum) with more geographical diversification, property funds etc...
- PMI type question? More info on what that looks like? Would they double up if it had option to provide for rest of family? Costs of each plan? What does it cover? etc...
Case Study 2: June & Colin (deceased)
- bit more fruity this one compared to the other one.
- additional fact find questions maybe less straight forward - more info on income/expenditure perhaps - will this increase or decrease in future (ignoring the rent)
- probate cost of investments?
- more info on the fixed cash ISAs? - time to maturity? exit costs? interest rates? transfer to stocks and shares as not her ATR?
- Long term care type question perhaps - is the rent going to increase? what will her outgoings be like on top of the rent? costs of ongoing treatment? long term care policy?
- More info on the state and spousal pension - is this annuity level or increasing? how much are they paying pm/pa?
- Dependant's drawdown question perhaps - died under 75 so tax free income/lump sums - can be passed on to kids with death benefit nomination
- Also APS transfer for the ISA to maintain tax status
- Discounted gift trust - perhaps outlining differences between that and a loan trust? advantages and disadvantages?
- cash flow question perhaps?
- out right gifting to kids - annual exempt amounts? discretionary trusts? - deed of variation on Colin's assets perhaps?
- How long were the AIM shares held? If long enough then could be passed on to kids IHT free without using up NRB?
- again, investments seem to be mostly on the racy side - more balanced approach perhaps
- lifetime annuity option? - could reduce estate, provide income she needs
- cost of advice as she doesn't want to manage them?