More than seven in 10 (71%) of customers seeking equity release said they had discussed the possibility with their children but the majority are kept out of the advice process, data from HUB Financial Solutions reveals.
Only 22% said they hadn’t discussed the possibility of equity release with anybody else with 7% having discussions with family and friends other than their children.
The analysis from one of the largest providers of regulated equity release advice in the UK also uncovered that only one in 14 (7%) went on to involve their children in meetings with financial advisers as they went through the planning process in greater detail, with nine in 10 (90%) not involving anyone else in meetings with their financial adviser.
Simon Gray, managing director of HUB Financial Solutions, said: “Involving children in the planning process can re-assure them that their parents are making a suitable financial decision to meet their needs and aims. It also gives children the chance to intervene if they are in a position to help financially and would like to do so if asked.
“It could even open up more tailored equity release solutions like servicing the interest on the loan. Doing so would allow children who have income to service all or part of the interest on their parents’ lifetime mortgage, leaving more equity in the property to maximise the inheritance left behind.”
