The answer is yes, you can choose to gift your home to a family member after you’ve passed away.
You’ll need to name who you would like to inherit the property as a beneficiary in your will.
Whether they’ll need to pay inheritance tax on this asset will depend on the price of your property.
If your property value is under the £325,000 threshold, it’s likely they’ll avoid having to pay inheritance tax.
However, if your property is over the £325,000 threshold, inheritance tax will be applied.
You can avoid, or minimise, inheritance tax being paid by gifting your property while you’re still alive.
If you live for at least 7 years after the gift has been given, the property will fall outside of your estate and inheritance tax won’t be charged.
If you pass away within 3 – 7 years of making the gift, it will be subject to inheritance tax.
If you choose to gift your home to a family member while you’re still living, you’ll be required by HMRC to either move out or pay your beneficiary rent (usually at the going rate of similar properties in the area) in order for them to not pay tax on this gift.
If you’re paying a mortgage and would like a loved one to inherit this property if you were to pass away, a pay out from a life insurance policy can provide the funds to pay off the remaining mortgage balance in full.
This will allow them to take ownership of the home.
If you’re considering gifting a loved one your home, or any other large financial gift, it’s wise to speak to a financial professional as they’ll be able to outline any tax implications you may face.