Equity release is a generic term for realising the value of some of the capital locked up in your home to be used to fund needs in later years. Whilst it is available to home owners over the age of 55, the available proportion of the equity in your house increases with age.

With pension incomes being squeezed, an increasing number of retirees are turning to equity release and drawing capital from the value of their home to fund needs in retirement.  There are also an increasing number of providers that are entering the equity release marketplace which provides greater competition and innovation.  Historically, all providers offered similar solutions but now there are a broader range of options available and making the right decision becomes much harder.

Taking advice on the most suitable solution has never been more important than it is today and Kirsty Mathis, Chilvester’s specialist Equity Release adviser, would be happy to have a discussion with you.  As a member of the Equity Release Council, Kirsty works within their strict framework and code of ethics so you can be assured of the quality of the advice you will receive.

EQUITY RELEASED FROM YOUR HOME WILL BE SECURED AGAINST IT

Many people want to make gifts of capital to their grandchildren, but before making any gifts it first may be advantageous to consider a number of factors to ensure that the monies are available when they are needed.

The first stage to consider is how much and when do you want to make the gift.  If this is being made as part of an inheritance tax planning strategy, it is probably important to make the gift sooner rather than later.  For others, the gift of promising financial assistance in the future if required (perhaps backed up by a change to your Will if necessary) may be a better way to support your family.

Whilst the act of gifting is usually tax free for the recipient of the gift (with the exception of substantial gifts of capital into some forms of trust), there may be tax implications to the donor that should be considered.   This means that advice at an early stage may be prudent to at least be aware of the implications of any particular course of action.

If gifting for the young person’s future needs, consideration needs to be made as to when access to capital may be required and the size of the gift may have implications on how best the monies are held in the interim.  Getting the most suitable investment for the term required is very important, particularly if the children are very young.

Deciding who is going to control the monies until they are needed has to be thought about; responsibility will probably lie with either the grandparent or parents to look after the monies if they are not needed immediately.