Case Study on IHT Implications of the 2024 Autumn Budget

This case study examines the implications of the Inheritance Tax (IHT) changes introduced in the 2024 Autumn Budget on financial planning for clients. It outlines the fundamental elements of an IHT plan and evaluates various options to mitigate pension-driven IHT liabilities. The case study features Tina Pollock, a 74-year-old widow concerned about the impact of these changes on her wealth and legacy for her two sons. It details her financial situation, including her assets, income, and expenditure, as well as her objectives for retirement income, care funding, and increasing her legacy. The document also presents a six-step process for IHT planning, which includes establishing objectives, modeling issues, assessing assets, and implementing suitable options. Additionally, it discusses the importance of understanding tax implications related to various financial instruments and the potential impact on beneficiaries. The case study serves as a guide for financial advisors in navigating the complexities of IHT planning.