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Equity Release guide discussion
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Retirement Interest Only (RIO)
A retirement interest only mortgage is very similar to a standard interest only mortgage, but with some differences.
The main part of the loan (capital) is usually only paid off when the last borrower moves into long term care or dies and you only have to prove you can afford the monthly interest payments.
Because you only pay off the interest on this type of mortgage your payments can be lower than a typical mortgage.
The maximum loan amount is £500,000.
Ride hard or stay home :iloveyou:
Ride hard or stay home :iloveyou:
Ride hard or stay home :iloveyou:
how do i find out what the questions are re health for enhanced equity release and what are the tax implications of giving my two adult (lower tax bands) children this £?
We do not have gift tax in the U.K. so there are no tax implications.
Sally died on 1 July 2018. She was not married or in a civil partnership when she died.
Sally left 3 gifts in the 7 years before her death:
Sally is not entitled to any other gift exemptions or reliefs.
There’s a £325,000 inheritance tax threshold. Anything below this amount is tax free.
£300,000 is used up by the gift Sally gave her brother. There’s no tax to pay on his gift.
The remaining £25,000 is used up by her £50,000 gift to her sister. There’s tax to pay on the amount not covered by the threshold. That means there’s tax to pay on £25,000 of the gift to Sally’s sister at a rate of 24%.
The £150,000 gift given to her friend is taxed at a rate of 32%.
Sally’s remaining estate was valued at £500,000 and charged at the usual 40% inheritance tax rate. Sally used up the tax-free threshold on gifts given before her death.
Hopefully this helps?