Millions planning equity relief to avoid will bills

Despite being persistently portrayed in the Daily Mail and the Telegraph as the generation that loves to 'Ski' - Spend the Kids Inheritance - two million retired people are finding other ways to avoid inheritance tax.

One in five say they plan to avoid heavy death duties from eating into their property and savings by drawing on equity release to help their children and grandchildren while they are still alive.

Inheritance tax looks set to hit the estates and legacies of 40 per cent of pensioners, and many plan to minimise the cost by spending it rather than leaving it in a will.

"It is understandable that retirees may want to see their children and grandchildren benefit from the money that would otherwise be put aside for their inheritance," said Murdo McHardy of Scottish Widow, which carried out the research.

"Receiving these gifts can help offspring to financially prepare for their future, for example by providing a deposit on a first home.

"Equity release products are a way for some retirees to be able to help their children, provided that it suits their individual circumstances," he added.

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