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:

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.

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.

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!

Nighttimenoise · Yesterday 00:33

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

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.

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.

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.

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