It seems an increasing number of high net worth (HNW) clients are now turning to equity release. Predictions are that this area is to grow exponentially now that new pension freedoms allow pensions to be passed on tax-free in certain circumstances.
As pensions start to become a very efficient way of cascading wealth down through the generations, it is expected that HNW clients will look to draw income for their property wealth which will still remain subject to inheritance tax.
In this instance, we expect more HNW clients to look to draw income from their property wealth with an intention of leaving their pension wealth to their estate.
Compounded with the reduction of the lifetime allowance to £1m by 6 April 2016, there are significant tax implications for those HNW clients that want to maintain a high standard of living over and above the income that a £1m pension can provide.
As more and more HNW clients decide to leave their pension wealth to their estate, property wealth could prove to be the answer to sustaining their current lifestyle.
Call us now on 01204 884545 for more information on Equity Release Plans