Equity Release for Gifting to Family
Equity release for gifting to family - helping children with a house deposit, funding a grandchild's education, contributing to a wedding, or simply advancing an inheritance while you can see its benefit.
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What happens next
- Fill in the form (2 minutes).
- We'll match you with the right specialist for your situation.
- A specialist independent broker will contact you to discuss your options.
Important: Equity release is a long-term commitment and will reduce the value of your estate. It may affect entitlement to means-tested benefits. Independent financial and legal advice is required. The specialist brokers we work with source plans from Equity Release Council approved lenders. Your home may be repossessed if you do not maintain required payments on a secured loan.
About Equity Release for Gifting to Family
13% of all equity released in 2025 was used for intergenerational gifting. It is one of the most emotionally rewarding uses of equity release and, with careful planning, one of the most financially responsible.
The options available
House Deposit for Children
The most common gifting use - helping adult children buy their first home in a market where deposits are out of reach from savings alone. Equity release provides the gift without depleting your liquid savings or affecting your own income.
House Deposit for Grandchildren
Helping grandchildren buy their first home. The same structure - equity release from your property provides the tax-free gift. No income tax on the gift itself.
School and University Fees
Private school fees, university tuition, postgraduate studies. Drawdown plans allow you to draw each academic year rather than taking all the money upfront - reducing interest cost.
Wedding Contribution
Contributing to a child's or grandchild's wedding. A lump sum lifetime mortgage releases the required amount with no monthly repayments.
Inheritance Protection for the Gift
If you want to ensure a proportion of your estate still passes to other beneficiaries, inheritance protection guarantees a percentage of the property value - even if the equity release balance grows significantly.
Tax Planning Considerations
Gifts from equity release may have inheritance tax implications - particularly if you give away a significant amount and die within 7 years. You should discuss the tax position with a solicitor or accountant before completing an equity release for gifting purposes.
How It Works
Gift amount and purpose
Tell us the total gift amount, the recipient, and the purpose. This shapes whether lump sum or drawdown is more appropriate.
Equity release vs alternatives
The specialist we introduce you to can compare equity release against the alternatives - downsizing to release capital, or the recipient taking a larger mortgage. Equity release is not always the right answer.
Lender comparison and inheritance protection
The specialist adviser will establish whether inheritance protection is appropriate and can compare ERC-approved lenders offering the inheritance protection feature.
Completion
Funds released. Gift made. No restrictions on the gift to family members.
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Frequently asked questions
Is equity release a good way to help children buy a house?
For homeowners with significant property equity who cannot or do not want to use savings, equity release is an effective way to help children buy a home. The key consideration is the long-term cost of interest roll-up. The gift is tax-free to the recipient. You should take legal and financial advice on the inheritance tax implications of making the gift.
Will gifting from equity release affect inheritance tax?
Potentially yes. Gifts made from equity release are subject to the same IHT rules as any other gift - if you die within 7 years, the gift may be counted as part of your estate for IHT purposes (using the taper relief rules). Gifts of up to £3,000 per year are covered by the annual exemption. You should take specific tax advice before making large gifts from equity release.
Can I ring-fence some inheritance even if I take equity release?
Yes - inheritance protection (also called inheritance guarantee) allows you to protect a percentage of your property value for your estate. This reduces the amount you can release, but guarantees a proportion passes to your beneficiaries regardless of the loan balance at end. All major ERC-approved lenders offer this feature.
Is it better to downsize and gift the proceeds?
Downsizing and gifting the proceeds avoids ongoing interest roll-up. Equity release avoids the disruption and cost of moving home. For many older homeowners, staying in their home is the priority. A specialist adviser can set out both options for you.
What is the maximum I can gift from equity release without IHT implications?
The annual IHT gift exemption is £3,000 per year. Beyond this, gifts may be subject to IHT if you die within 7 years - though taper relief applies after 3 years. There is no specific limit on the total gift amount from equity release - but the IHT implications of larger gifts should be reviewed with a solicitor.