Helping a young family through bereavement

Planning for the worst

The advice Louise and Andy initially received addressed the aspirations characteristic of a family with young children. Using cash-flow software, Louise’s Partner worked with them to map out how their finances could be arranged to meet their goals.

“At that point, it was really about making sure we would be comfortable, that we would be able to look after the kids and generally feel like we had our ducks in a row,” Louise explains.

When Andy was diagnosed, they refocused on ensuring that Louise and the children would be financially looked after if the worst were to happen.

The first mortgage the couple had taken out was an endowment policy, with critical illness insurance included. Louise had continued to work full-time in the wake of the diagnosis, but the payout from the insurance allowed her to give that up in order to look after Andy and concentrate on the children.

“When he was first diagnosed, I carried on working full-time,” Louise says. “I was going to hospital in Stoke every day – coming home from work, feeding the kids, then going to hospital. I’ve no idea how I did that.”

With their SJP Partner, the couple checked that their existing life insurance policies were written in trust; they used some of the critical illness policy proceeds to maximise Andy’s personal pension contributions. By using his annual allowance in the current and previous three tax years, he was able to benefit fully from higher-rate tax relief.

Having space to grieve – thanks to financial security

By this time, the focus was on making sure that everything possible could be done to ensure the family would be financially comfortable when Andy had gone. Being able to trust their Partner played a big role in that, says Louise.

“I’m very much of the opinion that, as the adviser, she is the expert and I can trust her with the detail of it. She knew us both, so it must have been difficult for her – having those hard conversations when we found out that Andy wasn’t going to get better. She was always very supportive and continues to be.”

Andy made it to Christmas 2017, passing away shortly afterwards with his family around him. By that point, the financial foundations for the family’s future had been laid, leaving Louise and the children space to grieve, knowing they were financially secure.

The life policy was claimed on, probate applied for and funds gathered from Andy’s pensions, while Louise’s Partner also introduced her to an accountant to help with paperwork and other requirements.

“I didn’t have to worry, because I knew my Partner had it covered,” Louise says. “I wouldn’t have got through it without her. I wouldn’t have known where to start, even though I have a banking background.”

Having worked in the financial-services industry, Louise – who works for DKMS, a blood-cancer charity – already understood the value of financial advice. Her experience since 2012 has given her a whole new appreciation.

“I honestly believe that without it, I wouldn’t be in the position that I’m in now and that it would have been a lot more stressful,” she says. “It has made me feel safe, and that’s massive, because I’m on my own now.”

This is just one client’s story and each situation is unique. The advice given to Louise and Andy was provided after a full evaluation of specific needs, circumstances and requirements, and was correct at the time it was given. The solutions provided may not be suitable for everyone, and the information provided here does not constitute advice.

The value of an investment with St. James’s Place will be directly linked to the performance of the funds you select and the value can therefore go down as well as up. You may get back less than you invested.

The levels and bases of taxation, and reliefs from taxation, can change at any time. The value of any tax relief generally depends on individual circumstances.

Trusts are not regulated by the Financial Conduct Authority.