Saga Personal Finance: Equity release can bring forward inheritance
Choosing to release equity from a home can allow people to “bring forward” an inheritance for the children or grandchildren, it has been claimed.
The over-50s specialist claimed that many people choose to use equity release for this reason instead of as a means to supplement income.
In contrast to reducing the eventual inheritance that people will pass on to their heirs, Saga argues that this use of equity release should be seen as an advance payment.
“It is a common concern that by releasing equity from their home people are concerned they will have less to pass on to their heirs but as mentioned above, for some people it helps ‘bring forward’ the inheritance,” said Clare Cracknell, director of marketing for Saga.
She advised that people considering this way of generating money should speak to a specialist adviser.
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