Case Study 1 Questions

Question 1

1. Issues that may result in them failing to meet objectives

Answer 1

Question 2

2. Additional info adviser needs to advice them

Answer 2

Question 3

3. Benefits from getting advice from an adviser

Answer 3

Question 4

4. Steps to discover ATR

Answer 4

Question 5

5. main factors to influence ATR

Answer 5

Question 6

6. Steps to find out ATR

Answer 6

Question 7

7. Key issues to discuss at next financial review

Answer 7

Question 8

8. Factors taken into account when assessing their existing pension income

Answer 8

Question 9

9. Explain differences between RPI and CPI

Answer 9

Question 10

10. Why existing funds may not be suitable

Answer 10

Question 11

11. Factors to consider when assessing the need for an emergency fund

Answer 11

Question 12

12. Explain financial situation should one of them die

Answer 12

Question 13

13. Factors to consider on their IHT position and gifting to grandchildren

Answer 13

Question 14

14. Explain how a discretionary trust works and the taxation implication of using one for gifting to grandchildren

Answer 14

Question 15

15. Explain the income tax and cgt implications of gifting their unit trust into a discretionary trust

Answer 15

Question 16

16. The factors to consider when advising on suitability and tax efficiency on their existing savings and investments

Answer 16

Question 17

17. Advantages and disadvantages of Nancy buying an annuity

Answer 17

Question 18

18. Recommend and justify actions they could take to have sufficient, sustainable income in retirement

Answer 18

Question 19

19. Recommend and justify a range of solutions that could help them mitigate their IHT liability

Answer 19

Question 20

20. Factors to consider before advising them to invest in AIM shares

Answer 20

Question 21

21. Recommend and justify a suitable policy to help them cover their iht liability on second death

Answer 21

Question 22

22. Explain what a discounted gift trust is and how it may help them secure tax efficient income and help their iht

Answer 22

Question 23

23. Explain how a loan trust works and how they may wish to consider one

Answer 23

Question 24

24. Explain how LPA works and benefits of registering asap

Answer 24

Question 25

25. What restrictions are their with regards to making gifts under an LPA

Answer 25

Question 26

26. Recommend and justify a strategy for them to make gifts into trust for their grandchildren for their property purchases

Answer 26

Question 27

27. Recommend and justify how they can improve the tax efficiency of their current arrangements

Answer 27

Question 28

28. Explain to them the drawbacks of an eis

Answer 28

Question 29

29. Explain to them why an investment bond may be suitable for them

Answer 29