Sums and daughters

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When it comes to financial planning, the Jacksons involve the whole family

When Jonathan and Mel Jackson, from Preston in Lancashire, first consulted a chartered financial planner, their instructions were clear. “Our priority is to pass on family money to our children, just as it was passed to us,” says Jonathan. “We’re not interested in clever wheezes: we want a consistent, long-term plan that ensures our wealth can be handed to the next generation and beyond.”

This rang true with Dominic McLoughney, of Becketts FS, who the Jacksons elected to work with. “We make it very clear that financial planning is a long-term project and not one that can be solved with a quick solution,” says Dominic. “We looked at their objectives as a family as a whole in order to put a plan in place.”

Both Jonathan, a solicitor, and Mel, who runs her own furniture business, had individual savings and investments, including assets they had inherited from their own families. But they were keen to plan jointly for the future of their daughters, Ruby, 17, and Jemima, 14. “This is family money and we want it to stay that way for many years,” Jonathan adds.

Their adviser’s recommendations focused on inheritance tax planning and investments for Ruby and Jemima that would help secure their future finances. Dominic was keen to ensure the Jacksons were using their annual gift allowances to reduce the size of their estate for inheritance tax purposes, and talked the couple through the process of making gifts out of normal spending, which can be a useful way to reduce a liability to tax. In addition, he suggested setting up offshore investment bonds that would cover Ruby and Jemima’s university costs and provide future gifting opportunities. He also ensured every member of the family was making full use of their tax-free pension savings allowances.

“By working with the family as a whole, Dominic was able to make the suggestions that worked best for our collective benefit,” Jonathan says.

The couple continue to meet with their adviser to review progress and discuss new goals – including beginning to work with their daughters. “My eldest is starting to show an interest in financial planning,” says Jonathan. “We want her to understand that it’s better to begin saving early in life than to wait until you reach your forties.”