Can I give my house to my children to save IHT and avoid nursing home costs?

Inheritance Tax rules on leaving a property to your family and how to avoid losing it for nursing care costs.

There are potential problems – so do speak to a financial advisor.

Inheritance Tax (IHT)

Genuinely giving the house to your children, or selling it and giving them the cash, means that if you live on for 7 years, it will not be counted as part of your Estate for IHT. The amount brought into your estate is on a sliding scale and depends how near the 7 years limit you survive.

Avoiding nursing home costs

If you have capital above £23,250 you will have to pay for your own care.  Below that, the Local Authority are, at least partly, responsible.  If the Local Authority believes there was a deliberate attempt to avoid paying for your care by giving assets away then, in some cases they can recover money from the recipients.