The Story of David and Margaret

If you’re a homeowner, retired or approaching retirement, and wondering how to protect everything you’ve worked hard for? This story of David and Margaret might feel very familiar.

David and Margaret are fictional clients, but their situation is based on real clients we see all the time. Many families in Cheshire face similar concerns when planning their estate, and this story reflects the kind of outcomes we help clients achieve.

David (68) and Margaret (66) Thompson are a retired couple living just outside Macclesfield. They own their home outright, have investments, savings, and two grown-up children. Their estate was worth just over £1 million.

But despite their success, they had concerns:

• “What would happen to our estate if one of us had to go into care?”
• “How can we make sure our children (and grandchildren) inherit what we want them to?”
• “Is a simple will really enough?”
• “What about inheritance tax?”

The Hidden Risks in a Basic Will

Like many families, David and Margaret had simple mirror wills they made years ago. They assumed that was enough to ensure everything would pass smoothly to their children. But they discovered several risks:

• Care home fees could eat into the estate.
• Inheritance tax (IHT) could take 40% of anything above £1,000,000.
• No Lasting Powers of Attorney meant no control if capacity was lost.
• Risk of divorce, remarriage, or creditors taking a share of inheritance.

That’s when they found Moneybox Wills and Trusts. We specialise in comprehensive estate planning for families just like David and Margaret.

Their Estate Planning Solution

We created a Family Asset Protection Trust, which allowed David and Margaret to hand over control of how their biggest asset would be managed and distributed in the future. This kind of trust can help ensure wealth is passed on in line with their wishes while offering flexibility to adapt over time.

We also updated their Wills to include a Flexible Life Interest for the rest of their estate. This type of trust gave the surviving spouse a right to benefit (interest in possession) — such as receiving income — while preserving the capital for their children.

As David and Margaret both have good pensions, they were comfortable that neither would need the others money to live, so they were happy to protect much of their wealth for the future but granted access to income and capital should circumstances change. 

After the second death, both trusts became fully discretionary, meaning the trustees could distribute the estate to children and grandchildren at the right time, and in the right way — protecting against risks like divorce, remarriage, or financial instability. Providing a multigenerational wealth preservation vehicle serving their family for years to come. 

We arranged Lasting Powers of Attorney (LPAs) for both Property & Financial Affairs and Health & Welfare. This gave their children the legal authority to support them if either lost capacity, without needing to go through lengthy court procedures.

Finally, we reviewed their inheritance tax exposure and advised how to fully utilise both the nil-rate band and residence nil-rate band allowances, discussed making use of lifetime gifting allowances and potentially exempt transfers — helping them to reduce the potential tax liability on their estate and pass more to their family.

Could This Be You?

If you’re in a similar position to David and Margaret, it’s never too early — or too late — to plan ahead.

Moneybox Wills and Trusts is here to help families across Cheshire with:

• Estate planning
• Wills and Trusts
• Inheritance tax planning
• Wealth preservation 
• Lasting Power of Attorney setup