February 1, 2016

Equity Release and Inheritance Tax

Update about pensions freedom


Equity Release can be a useful way of funding investment to save inheritance tax. Wealthier clients tend to have a variety of assets; shares, investment bonds, second properties etc. These may not be liquid or would result in a tax bill if sold. Using cash may not be the answer; perhaps there isn’t enough or there is a concern about running out of liquid funds.

Pension or Property?


Since pension freedom started in 2015, it is now possible to pass a pension fund free of inheritance tax. Some people may prefer to take income from their property and keep the pension fund intact.

Equity release is one way of raising liquid funds that can be gifted or invested in an inheritance tax efficient manner. We work alongside IFAs (Independent Financial Advisers) who can advise you on the tax and investment options. We will advise you solely in relation to the equity release advice. Sixty Plus is not authorised to advise on investment or inheritance tax planning.

We recommend that you contact your Independent Financial Adviser who can liaise with us, or we will be happy to introduce you to a suitable adviser in your area. If you are an IFA interested in discussing this subject, please contact us.