Property and the Family Home: Passing It On Efficiently

For many families, the home is the biggest asset — and often the trickiest.

Key points:

• The Residence Nil-Rate Band (up to £175,000) applies if you pass your home to direct descendants.
• Couples can combine allowances.
• Estates over £2m lose some or all of the allowance.

Nuances that trip people up:

• Downsizing? You don’t lose the allowance — but the paperwork has to be right.
• Joint tenancy vs tenants in common changes who inherits and how reliefs work.
• Second homes and buy-to-lets don’t qualify.

Practical tip: Don’t assume “the house will just go to the kids tax-free.” The detail matters.

Call to action: Let us review how your property fits into your IHT plan.

Back to You are not Immortal – a practical guide to a delicate topic – IHT