We helped a couple to secure the future of their daughter after she received a settlement following medical negligence..
A trust was established following the settlement of a court case which left their daughter disabled. We developed a comprehensive financial plan to help them map out their daughter’s future financial and care needs, and then set up an investment plan to provide the income needed to fund her lifestyle.
"I value and trust the personal service delivered by Woodruff Financial Planning. They are on hand whenever I need them to discuss the best options for me. They manage my investment portfolio professionally and comprehensively, delivering regular updates and meetings to discuss investment strategy and progress. My investments have consistently risen in value registering an average increase of over 8% per year in the last 4 years despite the difficult trading conditions. I have no hesitation in recommending Woodruff Financial Planning to other would be clients."
See also our guide to trustee investment.
Following a referral from a local solicitor, we were introduced to the trustees of a newly created trust. The trust had been set up as a result of a court case, in which the family was awarded damages following medical negligence. The trust had been set up for the benefit of the daughter and the trustees required advice on how best to fulfil their responsibilities to look after her interests and income requirements.
The Trustee Act 2000 sets out a number of duties and responsibilities for trustees such as the duty to diversify assets, take professional advice and look after the interests of beneficiaries. Since their daughter would likely live for many years, the trustees needed advice on the most appropriate product and investment strategy for the trust money.
The trust needed to balance the need for income to provide for their daughter’s lifestyle needs while securing the future capital in case this was needed.
They also needed to keep the trust money invested in a diversified way to generate the best long-term returns for the trust. As part of this an ongoing review was necessary.
We developed a financial plan for the trust, building on assumptions made about investment growth, income taken and the effect of tax. This gave the trustees an overview as to how the trust investment should develop over time.
Following this, we established a risk profile for the Trust and built a portfolio of investments to aim to generate an acceptable level of income whilst growing the capital. As part of this we recommended an investment vehicle to deal with the tax position of the trust whilst giving maximum flexibility.
Outcomes & Impact:
The trustees were able to satisfy their duties to look after the interests of their daughter by taking specialist financial advice and diversifying the portfolio. Because we created regular reports for the trustees they were able to demonstrate their compliance with their duties. More importantly, they felt secure in making certain decisions safe in the likelihood that their daughter would not run out of money in the future.
Each year we schedule two reviews with the trustees. The first will be to re-evaluate the trust’s financial situation and revise its financial plan so that we can take into account any changes to its circumstances and re-assess whether it remains on target to meet its long-term goals.
The second meeting reviews the trust’s investment portfolio and aims to keep it on track towards its goals while taking the least risk needed to do so.