Equity release

With the recent introduction of FSA regulation of equity release products (home reversion plans and lifetime mortgages) from this month, and the Phizackerley inspired latest round of IHT press outrage, perhaps these often maligned, and even more often overlooked, ideas need to be revisited in tax planning.

When considered sensibly in the round, equity release can be well suited to those possessed of a valuable home but not much else in the way of wealth. Aside from offering a readily understandable way for the individual to mitigate potential IHT liabilities, the facility to increase spending power can be appealing to the asset rich, but cash poor.

One might also wonder whether, with the surge in residential house prices arguably now over for the foreseeable future, and the possibility of further changes to the IHT code (the abolition of the PET anyone ?), the sensible implementation of planning using equity release might fall to be considered sooner rather than later.