WHY THE LITTLE DETAILS MAKE A BIG DIFFERENCE

About three years ago, I visited a client who we'll call James. James and his wife had pensions and investments through Lakeside, and as part of the review we asked for information about any other plans the client had elsewhere.

James mentioned a policy his wife had taken out years ago before they were financially secure. They thought it was a life-insurance policy which was only around £30 per month, and now they had more financial security - they were considering just cancelling it.

As part of the discussion, I suggested that we write to the provider and gather all the information on the plan – initially the clients saw this as more hassle than it was worth for such a small premium. However, we encouraged them to sign an authority on the plan so we could review it thoroughly. Having done so, we were able to explain it wasn't a simple life insurance plan but also covered them if they were diagnosed with a critical illness. On that basis, the plan represented excellent value for money, and we recommended they keep it running.

Fast forward three years to 2026, and James visited the office to discuss his investments again. During that meeting he shared the news that his young daughter was suffering a serious illness and the details of the treatment she was undergoing, along with all the associated stress and difficulty.

Hearing news like that is always difficult, but having James's family's details on file put me in a unique position to offer valuable advice. I was able to look into the details of the plan, which we held on file, and explain that the family were entitled to a payout from the cover due to a children's benefit which was included – we were able to provide James with the contact details to submit a claim and explain how the process worked.

A little while later, James got back in touch - they had submitted the claim on the plan we had discussed, as well as on a second plan which they would never have thought to claim against. As a result of the claims they received a payout of £50,000 which would be put to good use looking after his daughter who was still receiving regular treatment.

For James's family, that £30 a month payment they had once considered cancelling, turned out to be an incredibly important and valuable element of their financial planning.

This is what an ongoing advice relationship looks like in practice. During our reviews, we ask questions that can sometimes feel unnecessary or beside the point – details about older policies, plans held elsewhere, or expenditure details which seem irrelevant. We understand that sometimes it feels like admin for its own sake. But those questions come from experience, and James's story is a reminder of why we ask them. The value of that information rarely shows itself immediately. It shows itself when life doesn't go according to plan, when the difficult diagnosis comes, or when the economy takes an unexpected turn. Having these details puts us in a position to offer the best advice when it's most needed.

For more information on Lakeside services, please contact: admin@lakesidefs.co.uk

A conversation we've been having more often with clients in recent months focuses on inheritance tax. Many clients have read articles and seen reports on the subject and are asking if it's something which could impact their families. The honest answer, in many cases now, is yes.

For years, inheritance tax was seen as a problem for the very wealthy. That's no longer the case. The two main tax-free thresholds - the £325,000 nil-rate band and the £175,000 residence nil-rate band - have been frozen for years and are now set to remain frozen until at least April 2031. In the meantime, property values and savings have continued to climb, and exceptional investment returns, whilst welcome, have also served to exacerbate the issue. The result is that, whilst married couples can combine their allowances, more and more families are being drawn into the inheritance tax net every year, very often without realising it.

From 6 April 2027, the rules are changing again - and this one will catch many people by surprise. From that date, most unused pension funds will be included in the value of someone's estate for inheritance tax purposes. Pensions have historically been one of the most tax-efficient ways to pass on wealth, sitting outside the estate altogether. That advantage is being removed.

For someone who has built up a sensible pension pot, owns their own home and has some other savings alongside, the combined effect can be significant. Inheritance tax is charged at 40% on the value of an estate above the available thresholds, so the difference between planning ahead and doing nothing can run to tens or even hundreds of thousands of pounds.

The good news is that there are options available to combat the issue. Sensible use of gifting allowances, careful thought about how pensions are drawn down in retirement, the use of trusts, and reviewing whether life cover could be put in place to meet a potential liability - all of these can help. None of them are quick fixes, which is precisely why early conversations matter.

As well as this personal planning, generational planning can also play a key role. For many people, receiving a relatively modest inheritance from an elderly parent may be enough to push their own estate through the tax threshold and create a liability. It's for this reason that we often say that our advice can be most beneficial when it takes into account multiple generations of a family in order to plan generational wealth effectively.

If you haven't reviewed your estate planning in the last few years, it would be a sensible idea to do so at your next review.

For more information on Lakeside services, please contact: admin@lakesidefs.co.uk

 

What is family protection critical illness cover?

Family protection critical illness cover is a type of insurance that pays out a tax-free lump sum to support you and your family if you’re diagnosed with a serious medical condition.
The payout could be used for all sorts of costs, such as medical treatment, home alterations, household bills, and providing for your or your dependents’ future.

What is the main reason people take out this type of insurance?

Most people go to work to provide financial security for themselves and their family. Some of the money they earn is spent on the present, while the remainder is often invested into savings, investments or pensions to cover future expenditures, such as children’s university fees, weddings, house deposits and, of course, their retirement. However, if a person were to suffer a serious illness, such as a heart attack, stroke or critical illness, and were left unable to work, it may well jeopardise that security and even throw them into financial turmoil with no way to save for theirs or their children's future. Having this cover in place provides peace of mind that they would continue to have financial support if they became seriously ill.

How do such plans work, and what factors will affect the cost of the policy?

If you are diagnosed with a medical condition covered by the insurance policy, you will receive a tax-free lump sum payout, or you may choose a policy that pays out an annual, tax-free payout for a stated period of time. Key factors that will affect the cost of the policy include the sum you want to insure, the type of policy, your age, occupation, health and medical history and smoker status.

To find out more about family protection critical illness cover get in touch today: admin@lakesidefs.co.uk

SERVICES

Just some services we offer at Lakeside

At Lakeside our clients benefit from bespoke financial solutions and pro-active, ongoing service as well as access to exclusive products and services with extremely competitive pricing and charge caps. We offer the following services to all our customers:

  • Investments
  • Pensions
  • Insurance
  • Mortgages and Lending Options
  • Wills
  • Lasting Powers of Attorney

Visit the ‘Information Hub’ section of our website for further articles and updates on the portfolio of services that we offer.

First published on June 23rd, 2026
Last updated on October 9th, 2026

The information provided above is believed to be correct at the time of publication and is provided for information purposes only, it does not constitute advice. Any reference to interest rates or growth rates are examples only and are for illustrative purposes only. You should seek independent financial advice before making any decisions about your finances and financial products. We accept no liability for loss as a result of any action taken based on the information on this page where appropriate independent financial advice is not taken from Lakeside FS Ltd.