With the inheritance tax affecting an ever increasing number of estate’s, a common question we are asked in our client meetings is ‘can I gift my house to my children and would this help to reduce the inheritance tax on my estate?’. Unfortunately HMRC have designed rules specifically surrounding such planning measures which means they are not usually as effective as they might seem.
Given the frequency that this matter is raised, I was very pleased to read an excellent article on this subject by Georgina Christou (nee Donnellan), a solicitor in the Wills, Trust and Probate department at local solicitors Crane & Staples (https://www.crane-staples.co.uk/team/georgina-christou/). The article is copied below with authors kind agreement.
In the UK, whilst you can legally gift your house to your children and still live in it, there are several tax consequences and potential risks in doing so. You should consider these very carefully and seek legal advice before taking any action.
Read the full article here.
If you have queries regarding your estate’s potential liability to inheritance tax and would like advice on the planning options available, please contact the adviser team. We would be happy to discuss how inheritance tax might affect your personal circumstances and what planning measure would be suitable for you. Please see https://beechwoodfs.co.uk/our-services/estate-and-inheritance-tax-planning/for more information.
