Wills and probate: Think about inheritance before releasing equity

While releasing equity from a property may help to make ends meet, improve quality of life, or provide funds for an expensive project, homeowners should think about what they want to leave loved ones as part of their inheritance before releasing money.

Lorreine Kennedy, founder of Carematters-uk.com, stated that "raising money through an equity release, for whatever reason, can make a huge difference to the quality of a person's life," but warned that there are risks involved in releasing equity.

Often individuals find themselves in trouble because they do not understand equity processes and releasing assets before death could leave probate beneficiaries in financial straits if a person dies before dealing with debt or complications.

However, releasing money from property can be a form of inheritance tax planning and will allow beneficiaries to access their inheritance early.

Many older adults choose to do this so they can see their assets put to good use while they are still alive.

Published by Jessica Shervin