What Is a Lifetime Mortgage, and How Can It Help with Inheritance Tax?

Did you know that inheritance tax receipts have hit a record £2.8 billion this year, and they’re expected to surge to £9.7 billion by 2028? According to the **Office for Budget Responsibility (OBR) PUBLISHED BY . https://moneyage.co.uk/ , inheritance tax is becoming an increasing concern for many families across the UK. However, there are financial solutions that can help, such as **lifetime mortgages**, which could potentially reduce the taxable value of your estate. At My Later Life, we are experts in providing equity release and later life mortgage advice to support your financial goals and assist with **inheritance planning**.

What Is a Lifetime Mortgage, and How Can It Help with Inheritance Tax?

A **lifetime mortgage** is a type of **equity release** designed for homeowners aged 55 and over, allowing them to access a portion of their home’s value without needing to sell it. With a lifetime mortgage, you can borrow against the equity in your home, typically without having to make any repayments during your lifetime. The loan, along with any accrued interest, is repaid when you pass away or move into long-term care.

This financial product can play a key role in **inheritance tax planning**. By unlocking the equity in your property, the overall value of your estate decreases, which may help reduce the amount of **inheritance tax** due (currently set at 40% for estates exceeding £325,000).

### How Equity Release and Later Life Mortgages Help with Inheritance Planning

- **Lowering the Value of Your Estate**: By utilizing a **lifetime mortgage**, you reduce your estate's value, which could result in a lower inheritance tax bill.
- **Tax-Free Lump Sum**: The funds you release from your home are tax-free, which means you can gift money to loved ones without triggering inheritance tax.
- **Financial Flexibility**: A **later life mortgage** provides extra cash flow in retirement, enabling you to maintain a comfortable lifestyle while planning for your family’s future.

### Equity Release as a Solution for Reducing Inheritance Tax

As property prices rise and inheritance tax thresholds stay the same, more families are finding themselves liable for **IHT**. Your home may be a significant part of your estate, and releasing equity through a **lifetime mortgage** can allow you to access funds that you can gift to family members during your lifetime. These gifts, if structured correctly, could help reduce your estate's value and potentially minimize the **inheritance tax** owed, provided you live for seven years after the gift is made.

### Why Choose My Later Life for Equity Release and Inheritance Planning?

At **My Later Life**, we specialise in providing personalized financial advice that helps you achieve greater financial security in retirement while also preparing for your family’s future. Our team works closely with leading equity release providers, ensuring you receive access to the best products available. Whether you’re looking to reduce your estate’s value for tax purposes or simply want to enjoy a more comfortable retirement, we can guide you through the process.

When you choose **My Later Life**, you benefit from:
- **Professional Expertise**: Our advisors are experts in **equity release** and **later life mortgages**, offering tailored advice to meet your specific needs.
- **Bespoke Solutions**: We create custom financial strategies to help reduce your estate’s taxable value and maximize the benefits for your beneficiaries.
- **Free Consultation**: We offer a no-obligation consultation to discuss your options and determine if a **lifetime mortgage** is right for you.

### Get in Touch with My Later Life Today

If you’re concerned about **inheritance tax** and are looking for ways to lower your estate's taxable value, releasing equity through a **lifetime mortgage** might be an ideal solution. At **My Later Life**, we provide expert guidance on how to unlock the value in your home to support your financial future and your family's legacy.

Contact us today to arrange a free consultation and discover how we can help you achieve financial freedom while planning for your family’s future.