Answers · UK 2025/26
Can I put my house in trust to avoid Inheritance Tax?
Generally no — putting your main home in trust while still living there triggers the "Gift with Reservation of Benefit" rule, keeping the property in your estate for IHT. Effective trust planning typically requires moving out OR paying market rent.
Full answer
UK Inheritance Tax property trust planning 2025/26. Gift with Reservation of Benefit (GROB) rule: any gift where you keep "benefit" of the asset is treated as still owned by you for IHT — stays in your estate at 40% on death. Exceptions where trust planning works: gift home + move out + survive 7 years; gift share to children who also occupy + share running costs; pay full market rent to children. Pre-Owned Asset Tax (POAT) catches arrangements where GROB doesn't apply but you get benefit. Effective IHT planning: full NRB + RNRB + transferable bands (couple £1m); life insurance written in trust to cover IHT; gift + move out 7+ years; sell + downsize + gift proceeds; equity release + spend.
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This answer is informational only and does not constitute financial, tax or legal advice. Figures are for the 2025/26 UK tax year. See our methodology and sources.