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Inheritance update as Britons set to alter plans for youngsters in cost of living | Personal Finance | Finance

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Latest research has shown larger numbers of over 50s at the moment are expecting to support their adult children financially. In consequence of monetary challenges facing families, over 50s are reevaluating inheritance plans.

Some 15 percent of those asked said they’d give away money because of this of the crisis, in keeping with Saga Equity Release.

That is the case for Barrie Smith, a 67-year-old man from Pembrokeshire, who explained how he has “fast forwarded” his children’s inheritance.

His primary motivation for doing so was to assist them to get on the property ladder.

Mr Smith said: “I’ve got two children and three grandchildren. My wife and I actually have helped each out recently with money towards a housing deposit and refurbishment.

READ MORE: State pension alert as some may get ‘higher’ sum than full latest amount

Nevertheless, with this becoming more of a challenge, older people at the moment are considering differing approaches to inheritance.

Saga has highlighted equity release, which allows Britons to unlock equity of their home in the shape of a tax-free lump sum payment or payments.

Alex Edmans, Head of Retirement at Saga Personal Finance, said: “The Bank of Mum and Dad was a critical lifeline for many individuals through the COVID-19 pandemic.

“More parents at the moment are considering different approaches to inheritance – be that fast-forwarding plans, gifting sums of cash or releasing equity from their homes. We could see everlasting changes to attitudes towards inheritance because of this.”

Economic uncertainty appears to have triggered changing views on inheritance, with 12 percent of over 50s asked having gifted away money through the pandemic.

Now, over a 3rd of those asked said also they are more open to several types of inheritance, with the identical proportion wanting to see their children profit from their gift before they die.

Equity release is a choice many individuals might want to take advice on, because it may not be suitable for everybody, with Carolyn Matravers, Chartered Financial Planner at Old Mill, telling Express.co.uk: “There are a lot of pensioners and folks approaching retirement who’re property wealthy and money poor attributable to a healthy increase in the worth of their homes, rising inflation eating away at their savings and an enormous increase in the price of living. 

“For homeowners whose other sources of income is not going to be enough to fulfill their needs in retirement, who don’t want to – or can’t – downsize to a smaller property and don’t mind reducing their family’s inheritance or haven’t any beneficiaries, equity release is an option.

“But assessing someone’s position and identifying whether or not they are receiving all the advantages to which they’re entitled is an important first step and may really make a difference to their funds. 

“The advertisements make Equity Release sound so appealing and when money is low people feel it’s the only option. For some that’s the case, but for a lot of it is usually a case of taking a step back and re-visiting all the choices before happening this route.

“One other solution might be found, equivalent to renting a room out, that will ease the financial strain. Anyone interested by equity release should speak to an independent financial adviser for help and advice on one of the best options for their very own circumstances.”

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