As people near retirement or go through later life, financial decisions and personal care decisions matter more than ever. Many are worried about rising living costs and how to access care when needed, as well as protecting their assets for future generations, but they also care about being as independent as possible, while still having a quality of life. Two main ways to help achieve that are through Equity Release planning and establishing a lasting power of attorney for health and welfare.
At Will & Estate Planning, we do not see these as simply a legal process, but as proactive steps towards peace of mind for you and your family and loved ones.
Understanding Equity Release Planning
Equity Release planning enables homeowners over the age of 55 to unlock the value of their property without needing to move or sell. With property prices steadily increasing across the UK, many people find themselves “asset-rich but cash-poor”. Equity release provides access to funds that are otherwise tied up in the home, supporting financial independence in retirement.
There are two main types of equity release:
- Lifetime Mortgage – The most common form, where you borrow money against your home’s value. Interest accumulates over time, and the loan is repaid from the estate when the property is sold usually after the homeowner passes away or enters long-term care.
- Home Reversion – You sell a portion of your property to a provider in return for a lump sum or regular income, while retaining the right to live in the home for life.
Each route has pros and cons. It’s important to work with a specialist who can provide personalised advice, ensuring the solution is right for your financial situation and long-term goals.
Benefits of Equity Release
Equity release can be used for a wide range of purposes:
- Enhancing retirement income
- Paying off debts or an existing mortgage
- Funding home improvements or care needs
- Gifting money to children or grandchildren (often as an early inheritance)
- Supporting lifestyle choices such as travel or hobbies
When used as part of a broader estate planning strategy, equity release can also support tax-efficient wealth transfer. However, it’s vital to assess potential impacts on means-tested benefits, inheritance value, and the terms of the equity release agreement. That’s where our team’s expertise becomes invaluable.
What Is a Lasting Power of Attorney for Health and Welfare?
While financial decisions are often prioritised, planning for your health and personal care is just as important. A lasting power of attorney (LPA) for health and welfare allows you to appoint a trusted individual (or individuals) to make decisions about your care and wellbeing if you lose the mental capacity to do so.
This type of LPA covers decisions such as:
- Daily care needs (meals, routines, hygiene)
- Living arrangements or care home admission
- Medical treatment preferences
- End-of-life and life-sustaining treatment choices
It is worth noting that this LPA only becomes effective when you are no longer able to make these decisions yourself. Without it, family members may face legal hurdles, delayed decisions, and emotional stress at a critical time—especially if multiple family members have differing opinions.
Why Combine Equity Release and Health & Welfare Planning?
Combining your equity release planning with a lasting power of attorney for health and welfare planning demonstrates that you are taking a well-rounded approach to your future planning. It is hard to put a price on financial flexibility that allows you to continue to live independently and to be able to access high quality care when the time comes without feeling that you placed a heavy burden on your family. At the same time your health choices/wishes/needs and best interests are documented and protected in law.
Together they help ensure that your voice is heard, your financial resources are applied in accordance with your wishes, and potential unwanted and challenging decisions for families are avoided when they are going through emotional loss.
Why Choose Will & Estate Planning?
Will & Estate Planning is a trusted partner in life planning, providing end-to-end advice on equity release, wills, LPAs, trusts and estate administration. We do not provide one-size-fits-all advice. We take the time to understand your objectives and we will explain all the options in plain English. Then we will give you the right options, suited to you and your family, and lifestyle.
All our services are FCA-regulated (for equity release only), and our advisors remain up to date with the legal and financial frameworks of the day, to ensure we are compliant and operating best practice.
Final Thoughts
The sooner you plan, the more choices you will have. Whether you are considering whether to access the equity in your property, or to formalise your care preferences through an LPA, we are here to help you decide with clarity and confidence.
Please contact the team at Will & Estate Planning to start your planning experience today as you deserve clarity, care and trust in your future.
