Question:
For inheritance tax (IHT) purposes, all other things being equal, is it better to leave a main residence to one’s children when one dies or during one’s lifetime?
Arthur Weller replies
If someone leaves their main residence to their direct descendants when they die, they are eligible for the IHT residence nil-rate band (RNRB), currently £175,000 per individual. However, this RNRB is not available on a lifetime transfer.
