The fictional scenario for the IFAs taking part in this year's competition is as follows: Chris Anderson is a self-employed retailer who runs a small chain of high-end fashion boutiques, throughout the Central Belt. His wife Fiona is a partner in a law firm. They are in their mid-30s with no children.
After a short illness, Chris's mother died and left her entire estate to Chris, who is an only child. To his surprise, the net estate after paying the inheritance tax liability was valued at more than £1.25 million.
Now that Mrs Anderson's estate has been confirmed, Chris and Fiona have decided to clear the outstanding mortgage on their Edinburgh property, circa £250,000, and buy a small flat in the south of France for £150,000.
has been confirmed, Chris and Fiona have decided to clear the outstanding mortgage on their Edinburgh property, circa £250,000, and buy a small flat in the south of France for £150,000.
A further £450,000 has been set aside for a future business development and another £100,000 has been placed in two separate high-interest deposit accounts.
Chris's late father took an active interest in the stock market and Chris is keen to do the same but, because of his limited knowledge of financial matters, he is seeking the services of a professional independent financial adviser.
Chris and Fiona have discussed their financial future at length and have decided to commit a minimum of £300,000 to an investment portfolio.
The couple have decided to take a speculative/growth approach, and are prepared to invest their funds for at least a five to ten-year period. Given their recent experience with the Capital Taxes Office, they are determined to ensure their nominated beneficiaries will not have to pay any inheritance tax on any part of their estate.