Helping family during your lifetime can be one of the most satisfying things money does — and it should never come at the cost of your own security. Here is what to weigh up, in the right order, before giving money away.
Your needs come first — arithmetic, not selfishness
Retirement is long, and costs rise late: care, home adaptations, simply living longer than planned. Money given away is gone, and money released from your home carries compounding interest. The first question is never “how much can I give?” — it is “what do I need to stay secure for the rest of my life, with a margin?”
The care question, honestly
If you later need care, the state’s help is means-tested. In England (as at July 2026), if your assets are above the upper limit of £23,250 you generally pay for your care in full; below the lower limit of £14,250 your capital is no longer counted — although you may still be asked to contribute from your income. Thresholds differ in Scotland, Wales and Northern Ireland and are reviewed periodically. Deliberately giving assets away to qualify for support can be treated as “deprivation of assets” and reversed in the assessment. Gifting decisions need to be made with this in view, and with proper advice.
If, after that, gifting is right
Then it can be done well: within your means, with your family understanding the trade-offs, with the tax position checked by a qualified adviser, and — if releasing equity is part of the plan — with the full cost of the borrowing weighed against the value of giving now. Plans that meet Equity Release Council product standards come with a no-negative-equity guarantee — so you can never owe more than your home is worth — and the right to remain in your home, subject to the plan’s terms and conditions. Because it’s a significant, long-term decision, equity release always requires regulated advice — and sometimes the advice will be that another route, or no action at all, serves you better. That’s not a sales failure; that’s the job. Risk warning. Equity release will reduce the value of your estate and may affect your entitlement to means-tested benefits, now or in the future. A lifetime mortgage is a loan secured against your home. Equity release requires regulated advice; ask for a personalised illustration to understand the features and risks.
Not sure how much you could release?
Use our free, no-obligation equity release calculator to get an instant estimate based on your age and property value — so you can see the numbers before you decide anything about gifting.
Try Our Free CalculatorFrequently asked questions
What are the care means-test thresholds in England? In England, as at July 2026, you generally fund your own care above £23,250; below £14,250 your capital is not counted, with a tariff contribution from income between the two. Thresholds differ in Scotland, Wales and Northern Ireland. Can gifting money away affect future care funding? It can. If a council decides you gave assets away deliberately to reduce care charges, that is “deprivation of assets” and the gift may be treated as if you still held it. Should I take regulated advice before gifting or releasing equity? Yes. Equity release is a lifetime commitment; take advice first, and remember advice may conclude that no action is best. Regulatory disclosure. Retirement Solutions / LegacyWise Home Finance is an Appointed Representative of HL Partnership Limited, which is authorised and regulated by the Financial Conduct Authority.
