Can I leave an inheritance?
A common myth surrounding equity release is that you won’t be able to leave an inheritance for loved ones. The reality is that you can ring-fence a portion of your property value with a protected lifetime mortgage.
Inheritance protection
An inheritance protection guarantee allows you to protect a percentage of your home’s future value which can be given to loved ones after you pass away. The proportion that you’ve chosen to protect can then pass to your beneficiaries when the house is finally sold, regardless of how much is outstanding on the loan.
For example, a couple who have £50,000 available to release and wish to ensure that their grandchildren are left with an inheritance could choose to take £30,000 (60% of the amount available) and therefore leave 40% of the property's future value protected.
If you do decide to take out a plan that includes inheritance protection, it’s worth knowing that if you release additional equity at a later date you will reduce the amount of inheritance you can guarantee.
There are a number of lifetime mortgages that offer inheritance protection. If this is something you’d like, talk to your equity release adviser and they will search for your ideal plan.
What is a living inheritance?
If you’d like to see the smile on their faces now, you could consider taking equity release and giving a ‘living inheritance’. This allows you to give to loved ones sooner rather than later, so you can enjoy the experience with them. Many Key customers do this for gifts, to help through college, for driving lessons, or even deposits on first homes.
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