Inheritance tax: Britons could ‘completely’ cut their bill by using their home – check now | Personal finance | Finance

Those hoping to get rid of inheritance tax can consider the idea of ​​a lifetime mortgage. A life mortgage, also known as a capital release, is the release of money tied to the value of a property in the form of a loan. spoke exclusively to Katie Brain, Banking Expert at Defaqto, who provided insight into the matter.

She said: “Property prices have risen significantly over the past year, which could mean more potential to unlock some of the equity in your property.”

Ms. Brain explained that the equity released can then be used for whatever a person chooses.

For example, some may want to use it to improve their home, settle outstanding debts, or help the family.

READ MORE: Pensioners with arthritis or other conditions could get a £4,000 boost

However, inheritance tax planning as well as the release of equity can often be complicated.

For equity release, individuals will need to consult an advisor to find out if this is right for them – as it is not an appropriate option for everyone.

Releasing capital can be a major decision, as it involves getting a loan on a property, and interest can increase.

It must be reimbursed if a person dies or sells their home to receive long-term care.

Estate planning matters are also difficult to handle on your own, and Ms Brain also suggests seeking financial advice.

These professionals can help Britons understand the best solution for their personal situation.

Previous THE BIG MONEY QUESTION: How to sell a Spanish holiday home?
Next ALEX BRUMMER: 1985 dollar action contrasts with current malaise