Mary: “…I fancy going on a little boat trip with my dear friend Trudy. Wondering if I can afford it?”
Dave: “No problem Mary. How much is the boat trip?”
Mary: “£20,000”
Dave (gulping): “Twenty grand!?”
Mary: “Well, it’s more of an ‘Round-the-World cruise’ sort of thing…”
Dave: “Right. Your investment portfolio is healthy Mary… worth £170,000. We could take profits, so yep, shouldn’t be a problem.”
Mary (excited): “Marvellous! I’ll phone Trudy right away!!”
Dave: “Smashing. But of course you have discussed this with the kids Mary?”
Mary (surprised): “…Pardon??”
Dave: “Well, I mean Sam and Sophie are the beneficiaries in your Will Mary. They’ll be expecting their full inheritance…”
Mary (incredulous): “What!? I need their approval to spend my own wealth? Is that what you’re saying Dave?”
Dave (defensively): “No, heavens no! It’s your money to do with as you like Mary. It’s just that if you pull out £10,000 now, then that could mean… well, £20,000 or maybe even £40,000 that they won’t get when you die.”
Mary: “So by enjoying my retirement and living life to the full, I’m depriving the kids of their rightful inheritance, am I, Dave?”
Dave: “Sorry Mary, it’s just ‘best practise’ in our job to recommend this, In fact I quote from The Equity Release Council 12 point Checklist for Advisers; “Has the customer been advised to speak to their family and any other material beneficiaries of their Will?…”
Mary: “But I’m not releasing equity Dave. This is my money and what’s mine, is mine. The kids don’t need to know a thing. Right?”
Dave: “Erm, good point. Thankfully it’s only your investments, not the house. Sod the kids! send ‘em a postcard!”
Simon Chalk is equity release technical manager at Age Partnership
