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When should you start thinking about equity release?
If your pension savings are not providing you with enough income or you need money for something important such as home improvements, you can release money from your home using an equity release plan.
Equity release is a special type of loan using your home as security. The average age for taking equity release is around 70 so it is something to consider in later retirement if your pension savings are running short. Used properly, equity release is a good way of providing additional income or capital.
When should you start thinking about estate planning, wills and lasting power of attorney?
Estate planning is thinking ahead about how you want your financial affairs dealt with after your death or if you become unable to make your own financial decisions. This includes making sure you a have a valid will or have arranged a lasting power of attorney.
If you have significant assets, you may need advice about reducing inheritance tax.
It is relatively straightforward to arrange a will and lasting power of attorney but the financial cost and emotional anguish of leaving it too late can be huge and result in complex problems.
If you don’t have a valid will, your estate will be distributed according to the rules of intestacy. These rules can be complex. The situation if you are married or in a civil partnership and have children is summarised in the box below.
Rules of intestacy
If you are married or in a civil partnership and have children and die without a valid will, your entire estate will be distributed as follows:
- Your surviving spouse will get the first £250,000 plus goods and all your personal chattels
- In addition, they will get half of your remaining estate
- The other half goes to your children (or held in trust until they are 18.)
It is important not only to have a valid will but to ensure that is regularly reviewed and kept up to date.
Contact me to discuss your later life financial planning
I will be pleased to discuss equity release, wills or power of attorney
If you want to make the most of pension freedoms you should start planning ahead and make sure your financial affairs are in good shape in the years running up to retirement.William Burrows
Call: 07730 435 657
Leeds Innovation Centre
103 Clarendon Road
LEEDS, LS2 9DF