Equity release IHT warning

Posted in Equity Release Video News

1st June 2010

Using an equity release scheme to get around inheritance tax (IHT) may not always be the best use of your money, according to an expert.

Vanessa Owen from LV= comments that since the start of the year, her company has seen a rise in equity release applications specifically for in IHT planning.

However, the firm believes that using a lifetime mortgage to mitigate IHT only works if the money released from the property is in turn invested to maximise growth.

With the economy still recovering from recession, there are very few 'sure thing' investments, so LV= believe that entering an equity release scheme just to get round IHT isn’t the best idea at present.

As a result, they believe that at present the best use for equity release is to provide an extra income during retirement or paying for a one-off thing like a cruise.

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