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Estate planning for clients who worry it’s too late

Laurence also explains that BPR-qualifying shares can be more volatile than the shares of companies listed on the main market of the London Stock Exchange. They may also be harder to sell.

To help Harold get a better understanding of how this type of investment works, Laurence sends him a link to this Business Property Relief explained video. They agree a follow up call for a week’s time.

On their next call, Laurence discusses the potential for Harold to make a BPR-qualifying investment. He makes clear there are some scenarios in which Harold and Joan’s beneficiaries could be worse off than if Harold continues to own his current portfolio. For example, if neither of them survives two years and the portfolio performs worse than his existing investment does over the same time frame.

If at least one of Harold or Joan survives for two years, then the couple should expect to be able to leave the BPR-qualifying shares to their loved ones without this leading to an inheritance tax bill.

Harold is happy to take on the risk of holding shares in a BPR-qualifying business so that his and Joan’s estate might benefit from BPR. Laurence sends him a brochure for an investment that targets a steady, predictable return as Harold is not looking to target higher levels of investment growth, and they agree a follow up call once Harold has had a chance to read it.

Practical support for speaking to older clients (including virtually)

At Octopus, we continue to help older clients aim to pass on more to their beneficiaries by investing in BPR-qualifying investments. We understand that these conversations are not always as straightforward as the one between Harold and Laurence, especially during the current period when face-to-face meetings are impossible. That’s why we’ve written this blog about how you can make digital meetings feel like face-to-face (or as close as possible).

We’ve also created a useful guide to making video calls that you can share with clients. To get a copy, get in touch with your Octopus business development manager. You can find your local Octopus BDM here.

 

BPR-qualifying investments are not suitable for everyone. Any recommendation should be based on a holistic review of a client’s financial situation, objectives and needs. We do not offer investment or tax advice. Issued by Octopus Investments Limited, which is authorised and regulated by the Financial Conduct Authority. Registered office: 33 Holborn, London EC1N 2HT. Registered in England and Wales No.03942880. Issued: May 2020. CAM009736