Forward Financial provides parents with a Home Equity Investment (HEI) product to unlock their home's equity for tax-free financial support to their children. This allows for lifetime wealth transfer without loans or monthly payments, enabling children to fund major life events while parents retain home ownership and financial security.
Funding
Funding not disclosed
Founders
Product
Problem
Parents often wish to provide financial support to their children for significant life events, but traditional methods like loans or outright gifts can be complex, create debt, or impact their own financial security. This limits the ability to facilitate wealth transfer during a parent's lifetime without compromising their retirement or incurring ongoing financial obligations.
Solution
Forward Financial offers a Home Equity Investment (HEI) product, Forward Access, which allows parents to unlock a portion of their home's equity to provide tax-free financial support to their children. This mechanism facilitates lifetime wealth transfer without requiring loans or monthly payments from either party. Beneficiaries can access funds for major life milestones, such as purchasing a home or starting a business, without incurring personal debt. Parents maintain full ownership and control of their home, preserve their retirement savings, and retain financial independence. The platform provides tools for managing payouts and tracking the investment.
Target Audience
The primary customers are parents seeking to provide financial assistance to their children and adult children who require capital for major life events without incurring debt.
Features
- Home Equity Investment (HEI) structure enabling tax-free wealth transfer.
- No loan origination or monthly repayment obligations for parents or beneficiaries.
- Parents retain full ownership and control of their residential property.
- Funds can be utilized for significant life events and financial planning.
- Proprietary platform for managing HEI agreements and payout disbursements.
- Designed to preserve parents' retirement savings and financial independence.