Essentially, Equity Release will reduce the value of your estate, so if IHT may be payable when you die, it can result in a lower amount. Any IHT payable is worked out by adding up all your assets, minus the liabilities associated with the estate. So, after your Equity Release loan is paid, the IHT will be calculated on the remaining amount. There are a number of allowances and conditions that need to be considered and IHT advice should be sought from a specialist adviser.    It is worth looking into a Potentially Exempt Transfer (PET), which is an unlimited value gift exempt from IHT provided the giver survives for the following seven years. If they do not survive the sliding scale of the seven year period, then some or all of the PET becomes a Chargeable Consideration, and is added to the value of the estate.