The Great Wealth Transfer: What Later-Life Homeowners Need to Think About Now

What the Great Wealth Transfer really means

Baby boomers hold an estimated £5.5 trillion in UK property wealth alone. As this generation ages, that wealth will pass — through inheritance, lifetime gifting, equity release, or a combination of all three — to the next generation. It's not a question of whether the transfer will happen. It's a question of whether it happens by design or by default.

The CII's warning is clear: many families haven't planned how this happens. That leads to avoidable tax exposure, family disputes, poor decisions made in crisis, and outcomes that don't reflect anyone's wishes. The transfer happens anyway — but badly.

For homeowners in their 60s and 70s, this is urgent. Your children may already be in their 40s, thinking about their own financial future and their children's prospects. The timing is now, not in five years.

Why property is the centre of this conversation

For most older UK homeowners, the majority of your wealth is in your property. That creates specific planning questions that need answers:

• Do you want to pass the property itself on to your children, or is it a resource to draw on in later life?
• If you want to stay in your home but also support your children financially, what are your options?
• How does your property factor into inheritance tax planning?
• What happens to the property if you need care in your 80s or 90s?

These aren't abstract questions. They have real answers, and they affect everything downstream — your children's inheritances, their financial plans, potentially their ability to buy homes of their own.

Where equity release fits into the picture

Equity release is increasingly used as a wealth transfer tool in its own right. It's not just about funding retirement income — though that remains important.

Some homeowners gift the proceeds of equity release to children now, rather than waiting for inheritance. If structured correctly, this can reduce inheritance tax exposure. Others use lifetime mortgages to fund a child's property purchase — effectively accelerating inheritance. Some use it to equalise between children where one has already received financial support.

These decisions require proper financial and legal advice. The point is: equity release is increasingly part of a broader wealth transfer strategy, not a standalone decision. Verity Home provides the lending piece. We work with advisers across the broader picture — tax, legal, estate planning — to ensure the whole strategy makes sense.

Getting ready for the Great Wealth Transfer

The conversation is less stressful when it's planned. It's genuinely difficult when it happens by default — often during a health crisis, when decisions are made under pressure and regret follows.

Start early. Make sure both partners have a Lasting Power of Attorney in place. Not because you're pessimistic, but because you're prudent. Understand what role your property plays in the estate plan. If equity release is part of that plan, understand it clearly and with all the information in hand.

Talk to your children, if that feels right. You don't need to discuss details. But signalling that you've thought about the future, and that you're taking steps to ensure it works well, is genuinely valuable. It removes the anxiety and uncertainty your children might otherwise feel.

What your adviser should be doing

A good later-life financial adviser will ask about your family and your wishes. They'll explore whether equity release is right for you. They'll coordinate with your legal adviser on Lasting Power of Attorney. They'll consider inheritance tax and speak to your accountant if necessary.

If your current adviser isn't asking these questions, that's a signal to find someone who will. The Great Wealth Transfer is too important to leave to chance.