Gone are the days where you would inherit the property that your parents had lived in, get married and then live in that very same property for life. Through social media and transport links, the world has become smaller and people want to explore the world and live in different places.

What this means for modern inheritance 

It’s for this very reason that the concept of inheritance is long overdue a shake-up, especially as Britons are living longer, healthier, more active lives. Today, you are more likely to receive an inheritance as you are set to retire. In fact, a number of people are expecting to rely on their inheritance, not a pension, to fund their own retirement.

Recent research by Skipton Building Society found that 1 in 4 don’t plan to leave an inheritance to their children.

In fact, a new group has emerged with a trend that has seen them labelled SKIers: Spending the Kid’s Inheritance. We are seeing more retirees letting off some steam to celebrate the end of a lifetime of work.

 

Passing on a legacy

Whilst this may come as a surprise, looking deeper these SKIers may have already passed on a legacy in some shape or form. Many are choosing to give their loved ones an ‘early inheritance’. Life is expensive when you’re establishing yourself – training courses, university fees, property deposits, weddings, newborns; the list, much like the credit card bill, goes on and on.

For those helping our family in a different way, leaving a legacy is not enough; they want to see their inheritance in action. This is why the SKIers are looking to their biggest asset, their property, to help give the whole family a leg-up in life.

 

Inheritance in action: Equity Release

Through a safe form of equity release called a lifetime mortgage, those over 55 are taking money out of their property and using it to help them and their families live a more fulfilled lifestyle.

You are able to release a minimum of £10,000 and you are free to leave more in a reserve fund to draw upon as and when is needed for when the expenses come up. You can also use it to clear an existing mortgage, freeing you up of monthly repayments.

Equity release really has become a family decision where you can get the best of both worlds:

  1. Take advantage of rising property prices to do the things you never thought you could.
  2. Help your family out now instead of waiting until a time when you are not around to see your gift and they are likely more financially secure.

 

The Equity Release Calculator

To help you find out how you can use your property to help achieve your ambitions, we have created a free calculator so you can see how much you are eligible to release. We have also put together the 12 page Reader’s Digest Guide To Equity Release that includes examples, definitions, FAQs and sensible next steps.

 

Request your copy of the guide by calling freephone on: 0808 231 1968

To find out how much you can release use the calculator on the right column.

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