Eleanor and Felix are a married couple who are 68 and 70 respectively. They have four children, several grandchildren and possibly more in the future. Both are in good health and expect to live for at least the next seven years. Having recently downsized from their old family home, Eleanor and Felix have a significant amount of cash in the bank, and are aware that there will be a potential Inheritance Tax (IHT) liability on second death. They have not previously made any significant gifts.
They want to mitigate IHT but are conscious that their desired day to day expenditure is greater than their pension income. Rather than making outright gifts to family now, they simply want their family to benefit after second death.