Family Feuds

Home equity release schemes, like pensions, can be complicated. The Financial Service Authority, Citizen's Advice Bureau and Age Concern all recommend that you get independent legal and financial advice.

Wherever possible you should also discuss the investment with your family and anyone you live with. There is nothing like property inheritance for sparking off a feud. And if money is really tight you may be better off finding out whether you qualify for means-tested benefits or other benefits such as Attendance Allowance or Council Tax Benefit.

You might also want to consider moving to a smaller, cheaper property. If you need the cash for repairs or adapting your property you might be able to get help from your council.

Warning

Think carefully about using the money you have released to invest, as this can carry a high risk. Before you decide to enter into an equity release scheme, get advice from a solicitor and a fully certified Independent Financial Adviser. Satisfy yourself that they have the experience and qualifications to advise on equity release schemes.

You need to make sure you are aware of all the State benefits to which you might be entitled before you enter into any commitment. Ask them to carry out a means-benefits test.

An Independent Financial Adviser can assess whether a scheme is suitable for you and, if so, which type suits you best. This will need to take account of your tax position and how equity release could affect your potential entitlement to any State benefits.

You may wish to discuss this with your family as any equity release scheme will affect the amount of money you will be able to leave to your beneficiaries – the people who benefit from your estate when you die.

It is important that you look at whether there are other ways you could meet your financial needs before you make a commitment and there are a number of issues you need to consider carefully before choosing an equity release scheme.