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Original poster

Does everyone do this ?

32 replies

DoreenCorkhill · 05/09/2026 16:24

Strange question I guess but my sister asked me last week if my husband and I had signed our house over to our children yet ( DH is 65 in a few weeks so wonder if that prompted the question). She advised me she and several of her friends had signed there homes over to their children in a bid to avoid inheritance tax .
A quick google suggested to me this was not a great idea with more negatives than benefits but just got me wondering am I missing out on some new legislation or reform ? I know IHT had changed a bit bit - but to me it’s like any other tax you have to pay it .

OP posts:
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PrettyLittleRose · Yesterday 11:32

FlorenceBlack · 05/09/2026 17:15

If the adult child got divorced the property could be taken into account

This. ^ One of many reasons I would never do this.

joelcreasey · Yesterday 09:24

MrsBennetsPoorNervesAreBack · Yesterday 00:27

Well, given that less than 5% of estates are actually liable for inheritance tax, it doesn't seem likely that "everyone" will be doing this.

In my family’s case it was to avoid care home fees, as you suggest, it wouldn’t have hit inheritance tax thresholds.

BeKookyExpert · Yesterday 01:09

Princess Margaret signed over her house in Mustique to her son to avoid inheritance tax. He sold it from under her.

Nighttimenoise · Yesterday 00:33

So many people really don't understand inheritance tax (me being one of them until a lovely mnetter explained it)

Any1ForTennis · Yesterday 00:28

So few estates hit the inheritance tax threshold i can't imagine it is that common. Certainly not where I'm from anyway where house prices are just crazy not totally insane like down south!

I wouldn't ever sign my house over to kids though as there's no guarantee that none of them will end up getting divorced with their spouse wanting half the value and ultimately i would prefer to choose my own care home!

MrsBennetsPoorNervesAreBack · Yesterday 00:27

Well, given that less than 5% of estates are actually liable for inheritance tax, it doesn't seem likely that "everyone" will be doing this.

moonraker0 · Yesterday 00:23

The people I know that have done this have done so to avoid the home being sold for care home fees. One colleague is going through it now with a parent who has been in hospital and won’t be able to return home but they have no cash apart from the house. I’m on the fence about it for these reasons, purely because we are not talking about million pound houses, average house price here is £160k so I understand why people try to protect their children’s inheritance. For me personally I’d be scared of potential divorce like other people have already mentioned but it’s up to others what they do with their assets.

Nugg · Yesterday 00:14

No feckin chance

Ohdearnotthisagain · Yesterday 00:12

Insane thing to do. Leave your sister to crack on. I suspect she won’t be interested in logic.

Pollenaha · 05/09/2026 23:39

We're planning to sell our family home and downsize, and pass on the difference to the dcs (when they are much older - they are primary aged now). I wouldn't sign over a property that I was still living in, as it would be a gift with reservation.

I don't know anyone who has done this. My parents own their home in their own names and we don't see a need to sign it over to me or my siblings. We all own our own homes.

Topseyt123 · 05/09/2026 23:32

People who do this seem to think they are being very clever, but it can be fraught with pitfalls.

For example, adult children can get divorced and the property may then end up in the marital pot as assets are divvied up.

Then there is the deprivation of assets law just waiting in the wings.

There are various legal trusts that can be used and should be considered.

Copperoliverbear · 05/09/2026 23:08

Yes lots of my family have done this. But I suppose it depends on your situation.

Shinyhappyapple · 05/09/2026 22:55

Absolutely no intention of doing this. Plus, it would depend on the value of the property and any savings. Not everyone pays inheritance tax.

lordbaddingham · 05/09/2026 22:47

if it was so straightforward to avoid inheritance tax everyone would be doing it. It's not.

GrillaMilla · 05/09/2026 22:44

My friend's husband is an only child. His parents signed their house over to him many, many years ago.
They've now passed away and he's sold it. No issues.

Original poster
DoreenCorkhill · 05/09/2026 22:36

Good …. Thanks all just as I thought . Well dodgy . Everything I knew pointed to that conclusion but my batshit sister always makes me feel as though I’m stupid so thought I’d better check .

OP posts:
joelcreasey · 05/09/2026 21:30

FlorenceBlack · 05/09/2026 17:15

If the adult child got divorced the property could be taken into account

My auntie did this then my cousin got divorced…

She thought she was being really clever but it was a total nightmare in the end.

She hadn’t been paying rent either 🤦‍♀️

Mumtobabyhavoc · 05/09/2026 19:12

Speak to a financial planner.

BeardySchnauzer · 05/09/2026 19:09

Yes HMRC are fully aware of this little dodge! Plus deprivation of assets for care home fees.

there was recently a case that went to court because the kids were trying to evict the mum 😮

DontCallMeBaby · 05/09/2026 19:06

My dad’s not done it and he tends to know what he’s doing financially! Though in the context of another financial discussion he had realised that if I co-owned a house with him that would make me a second-home owner with knock-on effects. So doesn’t sound great …

toastycold · 05/09/2026 19:03

Absolutely no way would I do this. I’m 65.

moggiek · 05/09/2026 18:59

FlorenceBlack · 05/09/2026 17:15

If the adult child got divorced the property could be taken into account

This 💯

lippylip · 05/09/2026 18:46

I know lots of people with estates work more than 1m & none of them have done this. It’s a minefield.

What they have done is access money to help their dc onto the ladder etc

Gateappreciation · 05/09/2026 18:28

No, not done that.

Cotopaxi · 05/09/2026 18:27

This is not the clever-clogs tax dodge that people think it is.