Does Equity Release help with Inheritance Tax?
If you spend the cash you get from an equity release plan, then your estate for inheritance tax will go down. If you would have paid inheritance tax otherwise, then you will be saving tax. However, it is very rarely a good idea to use equity release as an inheritance tax saving plan – it just costs too much for what it saves. If it works to reduce your eventual inheritance tax bill, it is probably best viewed as a useful side effect of the equity release plan. That said, of course, it could be a nice bonus to think that 40% of what you spend out of your equity release money is inheritance tax that will not need to be paid!
