Traditionally we leave our loved ones an inheritance to be paid to them after we’re gone, but more and more people are looking to share the funds intended for an inheritance, while they’re still around to enjoy the benefits of that gift. Traditional inheritances have seen gifting to beneficiaries while those individuals are older and inherently more financially stable; when in actual fact they may have benefited more from that additional funding in their younger years, for example starting a family, or buying a first home.
Your needs and those of your loved ones will be specific to you, so knowing the best time to gift will be at your leisure, but it is important that if you choose this method, ensuring your own retirement years are funded sufficiently first is an important consideration.
Of course, not many people will have a lump sum of money to give out, which is why some homeowners turn to equity release in order to help loved ones with a financial gift.
With equity release, homeowners over 55 could unlock some of the tax-free cash that’s tied up in their property to use in a variety of ways, including passing it on as a living inheritance if you wish. Instead of missing out on your loved ones enjoying your generosity, with a living inheritance you get to share these precious moments with them. It might be seeing your children thrive in their dream homes, freeing family members of financial burdens or treating loved ones to the holiday of a lifetime.
In short, you could change their lives.
So what do you need to do next?
If you’re over 55, releasing the equity locked up in your home could give you the freedom to gift a living inheritance. So the next step would be to speak to us about your needs, we may be able to recommend other alternatives to equity release, that may be better suited to your circumstances, or we may be able to support you through the application process if our advice deems this a good option for you.
Our specialist equity release adviser will discuss your options and explain that equity release will reduce the value of your estate and may affect your entitlement to means-tested benefits.
With a lifetime mortgage you’ll still own your home. It’s a loan secured against your home and is repaid when you, or the last surviving applicant, pass away or move into long-term care. Find out more about Equity Release here.
The lifetime mortgages we recommend have a no negative equity guarantee. That means you’ll never owe more than the value of your home.
For more information, get in touch today and we’ll be happy to discuss your options to help your loved ones in a way that suits you.
SPEAK TO AN ADVISER
This is a lifetime mortgage. To understand the features and risks, please ask for a personalised illustration. Check that this mortgage will meet your needs if you want to move or sell your home or you want your family to inherit it. If you are in any doubt, seek independent advice.