Equity Release
How to release cash from your home and still live in it undisturbed.
Property prices have rocketed over the last fifteen years, making your home a valuable asset in a climate of low interest and annuity rates. There are three scenarios where you may wish to consider equity release.
You are asset rich but income or cash poor. you want to gift all or part of the proceeds to either mitigate or totally circumvent inheritance tax. you realise that by the time your beneficiaries receive their inheritance they might either be on the cusp of retirement or already retired and your grandchildren already finished university.
While welcome, the inheritance arrives too late to make any meaningful impact when the struggle is already over. You may prefer to see the beneficial effect in your lifetime rather than never know just how rewarding it was. Releasing equity from your home can help you improve the quality of your life in retirement advance an inheritance to your heirs when most needed combat inheritance tax without adversely affecting your standard of living.
The advantages are as follows:
- You retain your home even though you release equity.
- The plan can provide a lump sum, regular income or both.
- The money is tax-free.
- You can apply the money released to fund inheritance tax planning strategies.
- You can use the money to cover nursing care costs.
Disadvantages:
Receipt of means tested state benefits could be reduced or forfeited altogether. The value of your home will be reduced on death by the loan owed so it is advisable to not only inform your heirs but also involve them at the outs.