Leaving an inheritance is a big priority with the current generation. Most clients I meet tell me they want to ensure something is left to pass onto their family. And most family members that I meet tell me they would rather their parents / grand parents spent the money on themselves instead of worrying about leaving it to them!
However yes, you can guarantee an inheritance will be left to your family.
The share of your home that you didn’t sell via the Home Reversion Plan automatically forms part of your estate to be passed on to you family when then time comes.
The sales proceeds left after you have repaid your Lifetime Mortgage also fall into the same category.
With a Lifetime Mortgage there are ways to increase / guarantee further inheritance for your family. The first is paying the interest. By contributing towards the interest charged by the lender you effectively slow down the speed at which the debt “Rolls Up” and therefore increase the amount of equity that can be passed on. The alternative way is to select a lender that offers an Inheritance Guarantee feature with their Lifetime Mortgages. Typically these work in the sense that if you don’t borrow the maximum amount you could when applying for the Lifetime Mortgage, the lender will ringfence the remaining share and ensure that this is guaranteed to be passed onto your family.