Equity release when someone dies

Is equity release the best option?

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Equity release is a financial product that allows homeowners to access the equity in their property without having to sell it. This can be a great option for those who are looking for additional income in retirement or to pay off debts. However, when someone dies, there are certain considerations that need to be taken into account when it comes to equity release.

Firstly, it is important to note that equity release does not affect the inheritance tax liability of your estate. When you die, the value of your estate will be assessed and any inheritance tax due will be calculated based on this value. If you have taken out an equity release plan, the outstanding balance will be deducted from the value of your estate before inheritance tax is calculated.

Secondly, if you have a joint equity release plan with your spouse or partner, the surviving partner will be able to continue living in the property until they die or move into long-term care. At this point, the property will be sold and the outstanding balance of the equity release plan will be repaid to the lender. Any remaining equity will be passed on to your beneficiaries in accordance with your will.

It is also worth noting that some equity release plans come with a guarantee that ensures that your beneficiaries will never have to repay more than the value of the property when it is sold. This can provide peace of mind that your loved ones will not be left with a debt that they are unable to repay.

If you are considering equity release, it is important to seek professional advice from a qualified mortgage advisor. They will be able to assess your individual circumstances and provide guidance on the best products available to you.

In conclusion, equity release can be a great option for those looking for additional income in retirement or to pay off debts. When it comes to estate planning, it is important to understand the implications of equity release and to seek professional advice to ensure that your loved ones are not left with any unexpected financial burdens.

If you are interested in learning more about equity release and how it can benefit you, please contact clsmoney.com today to speak to one of our experienced mortgage advisors. We are here to help you make informed decisions about your finances and to provide the support you need to achieve your financial goals.

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Gemma May

Mortgage Advisor

Gemma May

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