Our wills and inheritance services

Approachable, sensitive and efficient

Gifts and Equity Release

What we can help you with

  • Gifts of property and money to your family
  • Gifts of income
  • Releasing Equity from your property

Why Thomson Hayton Winkley?

What you do with your property and assets in later life can have a significant bearing on how you fund your retirement and what happens to your estate after your death.  Whenever we are instructed to make or review your Will we will look at the whole situation and guide you through any important decisions.

Gifting substantial sums of money, property or land to a family member can be exempt from Inheritance Tax if you survive 7 years after the date of the gift.  Any gifts caught out by this rule have the benefit of some exemptions:

  • Annual Exemption – you can give away £3,000 worth of gifts each tax year without them being added to your estate if you die within 7 years of the gift
  • Gifts on marriage / civil ceremony of up to £1,000 per person or £2,500 for a grandchild or great-grandchild, or £5,000 for a child
  • Gifts to registered charities and certain political parties
  • Gifts out of your surplus income – but you must be able to prove that you were able to maintain your standard of living after making the gift
  • As many gifts as you want of up to £250 per person during the tax year as long as you have not already used another exemption on a gift to the same person.

The rules can be complex, but we understand them and can pass on that advice to you if you are thinking of making gifts.

The equity in your home can be used to release money to fund your retirement or as part of your Inheritance Tax planning. It might allow you to stay in your home and not be forced to sell it sooner than you would want to.


Answering your questions

What is equity release?

Equity release is basically a life time mortgage secured on your home.  Typically you do not have to make any repayments, but can if you can afford to do so.  The interest due on the loan is added to the amount borrowed and paid off when you die, or if the property is sold sooner because you move into care.

You do not need to draw down on all the money at once, you might prefer to take smaller amounts when needed.  Interest will only apply on the money actually drawn down, but you will have the security of knowing that you can call on further funds if needed.

There is a requirement that interest rates are fixed, or capped and various measures are in place to protect you.  For example you are entitled to remain in the property for life, or until you move into long term care.

The amount you could borrow will vary and will depend on the value of your property and your age. Different lenders offer different terms, so it is important to take Independent Financial Advice.

Don't take our word for it