Equity release allowing for early inheritance
Older homeowners are using equity release as a way to provide their loved ones with an early inheritance, a recent report has revealed.
Rather than leaving children and grandchildren assets in their wills-and-probate, a growing number of retirees are releasing equity to pass on to their loved ones while they are still alive to witness and enjoy it.
In recent times we have seen a higher frequency of withdrawal from the bank of Grandma and Grandad as elderly relatives utilise equity release to help grandchildren find their footing on the property ladder.
However, in the current climate, the bank of Mum and Dad is seemingly making a resounding comeback; grown up children are finding themselves more and more reliant on their elderly parents to help them move up the ladder.
Chris Prior is the Sales and Distribution Manager at Bridgewater Equity Release who produced this latest report:
“We’ve heard about the ‘Bank of Gran and Grandad’ gifting money to grandchildren to help them get a foot on the property ladder, but those wishing to move up a rung are also finding it difficult in the current climate. Rather than wait until they pass away to bequeath money to family members at a time when they may not have as much need for it, older homeowners are bringing forward such donations when they can make much more of a difference.”
Content correct at time of publication