There does come a time when you have to take into consideration what will happen when you pass away. It is a topic that is uncomfortable and no one wants to discuss, however, it does need to be covered and taken care of to ensure that your loved ones are taken care of should something happen to you. Gifting money to the children in your family through inheritance could be an issue if you need to take equity from your home or you do not have proper life insurance. Consider what you can do after working hard to leave something behind for your beneficiaries.
Make a Clear Will
After many years of hard work, you want to make sure that your family is taken care of and there are no hold ups when it comes to your will. Going over your available options should be done as soon as possible. The sooner you complete the leg work, the better. Gifting money to the children you have or other family members is extremely important to take care of. You want to make sure that anything you want them to have when you pass away is clearly stated to ensure that there are no problems for them when receiving the funds or property.
There are many options when it comes to gifting money to family members. For instance, you can have an equity release scheme in place on your home and should something happen to you, still gift the rest of the money to your family. This is money that has already been set aside, so it can be given to family members.
Life insurance is another way you can gift money. The life insurance pay out can be used strictly for inheritance or it can be used to save your estate from being sold and thereby leaving the home as the inheritance. It all depends on your situation. You definitely need to speak with a solicitor well versed in estates and wills to ensure you are leaving your home and all its equity properly.
Equity Release for Inheritance
If you have decided you need an equity release to make your retirement more comfortable then you worry about gifting money by using this means or in leaving an inheritance behind.
First you should know that if you provide money before you are dead it is not subject to any inheritance tax. It could be taxed because of capital gains. The key to ensure there is not tax on the money you gift is to make the sum small. Small sums given over time and that are under the government threshold ensure your family is gifted money while you are still alive. The fact that it comes from the Halifax equity release scheme is of no concern. It just means this is how you tapped into equity, provided the funds before your death, and there will be little left when you eventually die or sell the home to move to an assisted living facility.
You have another option in gifting money through your estate while taking out an equity release. Perhaps you did not wish to take the money out for gifts to your family, but to use for your retirement. Yet, you wanted to have some money left for your family after you pass away. It is possible.
With any company including Halifax you are allowed to set up an inheritance guarantee. This guarantee states there is a portion of the home that cannot be used for the equity release whether the home devalues or not. You see these funds are set aside never to be touched by the lump sum or interest that will accrue. It means you receive a smaller lump sum than you could otherwise obtain, but it does save the inheritance.
When you set up your estate via a will you need a solicitor. When you are working on taking equity out of your home you will also need to hire an independent financial adviser. Working with both a solicitor and adviser you can set up an equity release scheme, protect the inheritance and make certain your retirement is as fun as you wish it to be.
To choose helpers for your retirement needs it is definitely important that you seek independent help via independent websites offering equity release advice. Also use word of mouth from other family members, friends, and co-workers to ensure you are choosing a worthy individual to help you.
No matter what you choose to do, you need to take care of these plans as soon as possible to make sure gifting money to the children is set up and allow you to have fun without worries during retirement.