We can record this if the client takes a one-off lump sum.
The following will need to be done to model this:
- Add an Interest only debt
- Outstanding amount is the amount released
- End date will need to be changed to the client’s mortality date.
- You do need to add £0.01 annually into the ‘Regular cost’ and ‘Frequency’ field
- A lump sum for the amount of the equity being released will need to be added via an Action - 'Invest a Windfall'
The debt record should look something like this:
