31st August 2018
Key Partnerships: Inheritance Protection Feature
Did you know that 39% of clients are put off equity release due to inheritance concerns?* However, plans with a 'Guaranteed Inheritance Feature' will allow them to protect a percentage of the future value of their home to leave as an inheritance, as long as they don't take the full release amount.
For Example:
Mr and Mrs Smith (aged 70 and 73)
|
Property Value: |
£300,000 |
|
Maximum Release Amount: |
£127,500 (LTV 42.5%) |
|
Initial Release Taken: |
£63,750 (50% of maximum release amount) |
|
Guaranteed Inheritance Feature: |
50% protected |
|
Age at Time of House Sale: |
87 |
|
Property sale price when plan is repaid: |
£450,000 |
|
Inheritance Protected: |
£225,000 |
The amount that client's are able to protect is based on how much of the release amount they initially take. If clients subsequently choose to take further funds from a drawdown facility, then the protected amount will reduce.
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