Inheritance Protection in Jan 2022: Outsmarting the Inevitable

Is Inheritance Protection Is Vital? How to Get the Most Out of Your Equity Release Plan

Contributors: Nicola Date, Katherine Read. Reviewed by Francis Hui

Inheritance Protection Is Hard to Plan For, but It's Important. What Will Happen to Your Home and All of Your Belongings if You Die? If You Don't Have an Estate Plan, the State May Decide Everything for You.

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Inheritance Protection Guarantee: Outsmarting the Inevitable

Leave a lasting legacy by protecting your inheritance!

Death is always a difficult topic to contemplate, no matter how old you are. However, if you don’t seriously consider what will happen when you die, you could leave your kids with nothing but heartbreak.

In addition, equity release can drain your estate, meaning there will be nothing left to pass down to your heirs.

However, there is a solution!

We’re here to show you:

  • The secret to protecting your inheritance.
  • How you can unlock equity while still giving your heirs a portion of your estate.
  • How your actions now will impact what happens later.

As leaders in the UK equity release market, we’ve got the latest insight into how you can live financially free now, and when you pass away, give your family the boost that most people need.

Discover this right now!

Inheritance Protection

How Can You Protect Your Inheritance with Equity Release?

You can protect your inheritance with equity release in 3 ways; opting for an inheritance protection guarantee, paying off the monthly interest, or selecting a plan where you can pay off some of the loan annually.

The choice for taking on an equity release loan might seem counterintuitive3 at first because you’re essentially borrowing against your house when you haven’t sold it yet – but there are some major benefits.

While Equity release essentially means that you’re using the cash in your estate instead of leaving it to your kids, there are options to get the best of both worlds.

  • Protected Equity Guarantee This allows you to borrow against the value in your home and still keep aside a portion of your estate that will be left to your heirs. Ask about this at your initial appointment with an equity release adviser.
  • Interest Payment Plans Some equity release providers give you the option to make interest-only payments for a set period, usually up to 20 years. Any payments made on loan will be used to build as much equity in your home as possible so it can be passed down later.
  • Voluntary Payment Options – You have the option to make ad hoc4 repayments whenever you have the money to slowly pay off your loan.

What’s an Inheritance Protection Guarantee?

An ‘inheritance Protection Guarantee’ is a tool offered by many equity release lenders that allows you to protect a percentage of your property value to be set aside for your heirs.

How Do You Find an Equity Release Lender That Offers an Inheritance Protection Guarantee?

You can find an equity release lender that offers the option of an Inheritance Protection Guarantee by getting in touch with a whole-market financial adviser that specialises in equity release. Mention to your adviser that you’d like a plan with an Inheritance Protection Guarantee.

Interest Read: How Do You Find the Best Equity Release Company in Jan 2022?

How Else Can you protect your inheritance for your heirs?

You can protect your inheritance for your heirs by keeping your will up-to-date, signing a pre-nuptial agreement, creating trusts, purchasing insurance policies, and keeping your beneficiaries list relevant.

Here’s more information on 5 steps to protecting your inheritance for your heirs:

  • Create a will – This vital step can never come too soon, and make sure it’s always kept up-to-date.
  • Sign a prenuptional agreement – You should consider signing a prenuptial agreements1 if you’re remarrying later on in life, to protect your family’s wealth from being lost in case of divorce or death.
  • Create trusts2 So your money will not need to go through probate court when it is time to divide assets among heirs, which may take years if there are multiple beneficiaries.
  • Purchase insurance policies Such as life insurance or an annuity policy with a payout option that ensures heirs will get the money upon death rather than waiting until all debts are paid off.
  • Be clear about your beneficiaries – Make sure that all your beneficiaries are up-to-date and listed.

You need to take the time to make informed decisions about what your future legacy will be. It may not seem like much today, but it could mean a lot in years to come.

Get in touch with a financial adviser who can guide you through the process.

leaving inheritnace

Should You Get Help From Your Attorney When It Comes to Arranging Inheritance Protection?

You must get help from an attorney when it comes to arranging inheritance protection. The way we live our lives today means we need more than just wills5; rather, we may require legal assistance from someone who specialises in estate planning to help us prepare for the future.

It’s important to take steps now so that you can leave an inheritance worth passing on to your loved ones – a legacy that will undoubtedly be cherished more than anything else.

Common Questions

How Much Does Inheritance Protection Cost?

Do I Need a Solicitor?

How Can Inheritance Protection Help My Family?

Should I Speak to a Financial Planner?

In Conclusion

With the right guidance, the best of both worlds is possible to achieve.

We all want to leave a lasting legacy and ensure that our kids are protected for the rest of their lives. That’s why estate planning is so important – and why everyone should have at least some kind of plan in place before anything happens.

Are you wondering how much equity there is in your estate? Try out our FREE equity release mortgage calculator right now!

Editorial Note: This content has been independently collected by the SovereignBoss advisor team and is offered on a non-advised basis. Sovereignboss may earn a commission on sales made from partner links on this page, but that doesn’t affect our editors’ opinions or evaluations. Learn more about our editorial guidelines.

rachel w

Rachel Wait
Personal Finance Journalist

Rachel is an experienced finance journalist and editor with a particular interest in personal finance and consumer affairs. She has vast experience writing about money issues, property, insurance, and consumer affairs, and you’ll find her articles regularly featured in top media and newspaper publications.
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Written by
John Lawson
Founder SovereignBoss

John is passionate about education and has made it his life-long mission to assist UK citizens on their future financial options, with a specialist interest in equity release, and SovereignBoss is the natural extension of this passion.

Reviewed by
Francis Hui
Senior Risk Manager

Having held various high-level roles across the industry, Francis is truly an expert in aiding UK citizens in their financial decisions and risk analysis. His unique insight and statistical knowledge make him the perfect person to help you take your financial future to the next level.
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Katherine Read
Consumer Affairs Writer

Since joining the editorial team at SovereignBoss, Katherine has become focused on bringing transparency to finances and opportunities for those approaching retirement age. She writes on the topics of equity release, home reversion, and mortgages.

Nicola Date
Writer & Journalist

Nicola is a financial writer for SovereignBoss and is passionate about the opportunities that equity release can open up for homeowners. Her extensive business experience and deep understanding of the industry means that she’s always up-to-date with the latest developments.

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