Enhanced Equity Release and how health considerations can impact the choices you have.
When considering Equity Release, it’s important to understand how personal health and legal preparations play pivotal roles. Let’s look into the significance of health conditions, wills, and Lasting Powers of Attorney (LPAs) in the context of Equity Release.
The link between health and Enhanced Equity Release
Age alone doesn’t define eligibility for a Lifetime Mortgage. Health conditions can greatly influence the advice and options available, particularly if you have life-limiting health issues. Providers may also offer more favourable terms for many of the more common health issues, such as angina, diabetes or high blood pressure, which are kept in check by medication. This can potentially allow you to borrow more. An important point to remember if you’re asking, “can I borrow more with an Equity Release plan if I have health issues?”
Why health matters in financial planning
Equity Release can be central to later-life financial planning. Your current health not only affects immediate quality of life but also has implications for future care needs and inheritance considerations. Any advice process will include questions about your health in order to offer the most suitable options for you and your family.
Preparing a will
Drafting a will is a crucial step in long-term planning. It clarifies your wishes for your estate, simplifying the administration process. Taking out a Lifetime Mortgage can often prompt these essential family discussions.
Understanding Lasting Powers of Attorney (LPA)
A LPA is a legal document authorising a trusted person to make decisions on your behalf should you become mentally incapacitated.
LPA for financial decisions:
- Covers a wide range of financial activities from property transactions to bill payments.
- Your chosen attorney, or attorneys,must keep distinct financial records and may provide updates on your financial status.
LPA for health and care decisions:
- Activates upon loss of mental capacity, allowing the attorney to make healthcare and living arrangement decisions.
- You can specify whether your attorney can make decisions about life-saving treatments.
The Critical Role of LPAs in Equity Release
For joint Equity Release applicants, an LPA is vital for accessing further funds or drawdown facilities in the future. Without it, these financial avenues may be unavailable.
Avoiding assumptions in marriage and partnerships
Contrary to common belief, a spouse or civil partner does not automatically have the authority to manage finances or healthcare decisions. An LPA is essential for granting this legal power.
Equity Release, especially Enhanced Equity Release for those with health conditions, requires careful consideration of your health, potential long-term care needs, and the legal structures that will support your decisions. Taking the right advice from an independent and experienced adviser is essential.
