David is 52 and lives with his long-term partner. He had worked for the same employer since 1977, was a higher-rate tax payer and had a large potential Inheritance Tax (IHT) liability. David believed he might have a claim for constructive dismissal, and was looking for guidance.

David had appointed a specialist employment lawyer to negotiate with his company, including his severance package. We believed that David had not been made a fair offer relating to his pension fund and, due to the complexity of the case, we sought a second opinion.

What did we do?

We worked with a pension specialist and we able to obtain an increase in the offer made.

We were able to maximise David’s retirement income; by taking his lump sum, he now has control over the assets and his tax-free money is managed as part of his discretionary portfolio.

The results

By drawing his regular pension, David now is at the top of the pecking order should the scheme fail: pensioners have greater rights compared to a deferred pensioner. We also obtained written confirmation that his partner is entitled to survivor benefits, which has made them both feel much more secure.

As part of the process, it was discovered that David’s mother had been widowed 50 years ago and never remarried. Due to changes in IHT, upon his mother’s death the estate took advantage of nil rate band at the time of his father’s death, making a considerable tax saving.