Resolving Equity Release inheritance worries
Recent research has revealed that a third of over 55s now consider their property wealth to be a key part of their retirement planning, however 32% are worried about inheritance with this proportion rising to 41% of over 65s. Richard Espley Head of Equity Release considers how to address these worries.
“Nowadays there are specific features within Equity Release products designed to manage inheritance worries. Equity Release advisers, accustomed to this concern, will be able to discuss these features and give the borrower peace of mind as they decide whether or not to release property equity. These include the ‘no negative equity guarantee’ and also many products now offer inheritance guarantee features to help protect some of the equity in the property for inheritance purposes.
“However there’s another aspect to this which is often overlooked – a Will is also needed to address Equity Release inheritance worries! Writing a Will is, in my experience, something that a lot of people put off. Indeed research in 2014 showed that, of the 50 million adults living in the UK some 26 million had yet to make a Will. For most people their property makes up the majority of their estate and so, as Equity Release lawyers, we advise that when you release property equity you should also update your Will or make a Will if you haven’t got one.
“If you don’t have a Will then your estate would be subject to the Rules of Intestacy and it’s these rules that would determine who would manage, administer and inherit from your estate – not you. Typically the Rules of Intestacy mean that your next of kin would inherit in a fixed order and cohabitees or step children would receive nothing. Making a Will enables you to provide for your dependents whilst also ensuring that your property assets are bequeathed as you want them to be.”
Content correct at time of publication