Does equity release allow me to leave an inheritance?

Equity Release allows homeowners aged 55 and over to use the money tied up in their homes to help with their needs. In 2022, over 65,000 people released money in this way for things like repaying debts, helping out their families, home improvements or simply to help with the costs of day to day living. The money is tax free and can be used for any purpose.

One concern people have, is that if they take out an Equity Release plan, will they still be able to leave money to their family as an inheritance? Many people want to make sure that the people they love are looked after financially, when they are no longer there to look after them.

The good news is that Equity Release plans have a number of features that ensure that you can leave money to those you love to inherit after you’ve gone.

Firstly, you can choose an equity release plan which offers an ‘inheritance protection guarantee.’ This allows you to ring fence a portion of your home’s value to guarantee an inheritance for your loved ones. When the house is sold, the portion you chose to protect will pass on to your beneficiaries, no matter how much is outstanding on your loan.

Equity Release plans also offer features which allow you to manage the amount you owe and so maintain an inheritance for your loved ones. You can make voluntary repayments typically up to 10 to 15% of the original amount borrowed. You can also pay some or all of the interest instead of adding it to the loan. These features allow you to be in control and ensure that you leave an inheritance to protect your family.

If you’ve found this video helpful, why not have a look on our website – RetirementSolutions.co.uk, where you’ll find lots more videos giving information about Equity Release.