All you need to know about your living inheritance

What is a living inheritance?

The practice of leaving your estate to your loved ones dates back to ancient Greek times. Time has moved on, though, and while a traditional inheritance is still the norm, older generations are also looking towards giving a living inheritance.

We’re all living longer and so a living inheritance allows you to see your loved ones enjoy your contributions now, when they may need it. Generally, we all become more financially self-sufficient as time goes on, so often by the time people receive a traditional-style inheritance, they need it less than they would have when they were younger. The reality is that by giving a financial gift earlier, you could help loved ones buy a home, fund their education, pay for their wedding or help ensure their financial security.

When and how to give a living inheritance

Everyone’s situation is different and it’s likely your loved ones will need help at different times. The first step is to make sure you have provision for your retirement before thinking of others.

Of course, not many people will have a lump sum of money to give out, which is why some homeowners turn to equity release in order to help loved ones with a financial gift.

With equity release, homeowners aged 55 and over could unlock some of the tax-free cash that’s tied up in their property to use in a variety of ways, including passing it on as a living inheritance if you wish. Find out more by ordering your FREE expert guide today.

Making a difference

Instead of missing out on your loved ones enjoying your generosity, with a living inheritance you get to share these precious moments with them. It might be seeing your children thrive in their dream homes, freeing family members of financial burdens or treating loved ones to the holiday of a lifetime. In short, you could change their lives. And you wouldn’t be alone either. Almost a quarter of Key's customers choose to gift some or all of their release to family and friends*.

They’re making a difference, and it’s all through the power of the tax-free cash tied up in their homes. Find out how much cash you could release in seconds with Key’s free online calculator.

Where does Key come in?

Key know that the decision to release equity is an important one. That’s why, before you go ahead, you need to take advice. It’s a regulatory requirement.

This is where Key come in. During your first, free, no-obligation appointment, your fully qualified Key Equity Release adviser will talk you through the process as well as look at your other options. If equity release isn’t right for you, they’ll tell you.

Over the past 20 years, Key has seen thousands of people all with different needs and wants for their future and all with their own unique set of circumstances. Their equity release advice is unique to you, delivered by qualified experts, who will take the time to understand your needs. They’ll search their product range to ensure they recommend the right plan for you.

There’s no pressure to go ahead. Your adviser will give you all the information you need about equity release for you to make an informed decision in your own time. Find out how much cash you could release in seconds with Key’s free online calculator.

What should you think about before taking equity release?

Key Equity Release offer lifetime mortgages only, the most popular form of equity release, which is a loan secured against your home. You should always think carefully before securing a loan against your home. Their specialist equity release advisers will discuss your options and explain that equity release will reduce the value of your estate and may affect your entitlement to means-tested benefits.

With a lifetime mortgage you’ll still own your home. Typically there are no monthly repayments to make as the loan plus roll up interest is repaid when the plan comes to an end. The lifetime mortgages Key recommend have a no negative equity guarantee. That means you’ll never owe more than the value of your home. All of Key's equity release advice relates to their range of Key-branded products and is completely free of charge, so you can find out if it’s right for you without it costing you a penny.

Key's expert equity release advice is now available in full over the phone, so call them free to find out more on 0808 2529 760 or request your FREE Guide here.

*Key’s Market Monitor HY 2020