YOUR PORTFOLIO Financial curveballs
Kristen Cunliffe
Red Star Wealth
Untimely death
Red Star Wealth ’ s managing director Kristen Cunliffe worked with a couple in their early 60s who inherited an unexpectedly large sum that changed their lives . This allowed them to move to a new home in an area they loved , while the husband prepared to stop work and retire comfortably . Then , disaster struck . “ He died suddenly of a heart attack , despite seeming fit and well ,” says Cunliffe . “ We worked hard to support the wife who now had to make financial decisions on her own , which she wasn ’ t used to – not only was she bereaved , she also had all this unexpected money and wasn ’ t sure how much she needed .” The managing director advised her to take a step back , then ensure she had enough cash in the bank to pay her bills . Next , they looked at her budget over six months to set the right level of income from her investments . Finally , they worked
out what residual pension she was due and carried out some inheritance tax planning , including how to gift money to her children without leaving her feeling financially vulnerable . “ It was a matter of taking a lot of time so she didn ’ t feel rushed and overwhelmed by the enormity of the decisions she had to make ,” Cunliffe adds . “ She stayed in the big house because it ’ s a beautiful area and she feels a lot of peace there , but it ’ s far from her children and I don ’ t think it ’ s the house she would have otherwise chosen .”
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