Give your loved ones the perfect gift this Christmas. But how?
It’s a familiar dilemma for high-net-worth individuals, how to be generous to loved ones without disrupting carefully structured portfolios or triggering unnecessary tax bills.
There is a way. The gift of a solution that allows clients to borrow against their investment portfolio, without moving custody, meaning their assets continue to gain value.
Acting as a revolving credit facility, clients can draw funds, repay, and draw funds again whenever they need it. And the best part? They only pay interest on the drawn amount.
The gift to your clients? Newfound liquidity to use how they wish. Whether it’s giving their children financial freedom or helping them onto the property ladder, the choice is theirs.
Selling investments to fund a deposit or luxury purchase would be a move few advisors would recommend. Quite rightly, clients don’t want to lose their investment gains, and that’s where a Lombard loan comes in.
It’s the financial equivalent of a perfectly wrapped present; elegant, efficient, and surprisingly practical.
With a Lombard loan, clients can unlock up to 50% of their portfolio. A £2 million portfolio could unlock up to £1 million in cash, enough for a meaningful property deposit.
The modern “Bank of Mum and Dad”
Clients can use their funds to gift in numerous ways, whether it’s for a dream wedding or funding a new business venture, they can choose to use it their way.
Gifts are unique to an individual and the possibilities with Lombard loans allow the gift to not only be utilised once, but again and again as the facility remains open.
Better yet, the gift can be structured strategically. The gift becomes exempt from IHT if your client lives a further 7 years. And, if they keep the facility open, it can simply be repaid from the estate in the future, a dual benefit for liquidity and legacy planning.
The gift of liquidity, not liquidation
Everyone likes to give generously, but no one wants to sell their assets. Firenze’s Lombard lending solution lets clients share their wealth without dismantling it.
From weddings to first homes and future successes, offering a solution to your clients that helps them gift in the way they want is reciprocated with a stronger relationship as advisers offer strategic foresight instead of reactive sales.
Help clients give without compromise and make this Christmas, a Christmas to remember.
Disclaimer: This article is for informational purposes only and does not constitute financial advice. Wealth managers must seek appropriate regulatory permissions before introducing or advising on Lombard lending solutions.
