How to Protect the Family Home from Inheritance Tax

For many families, the home is their largest and most valuable asset. As property values have risen, it can also represent a significant part of a future Inheritance Tax bill.

With the right planning, there are ways to make use of available allowances, protect the family home and reduce the risk of your loved ones having to sell property simply to meet a tax liability.

This guide covers:

How the Residence Nil-Rate Band works, including the additional Inheritance Tax allowance available when you leave your main residence to direct descendants and the conditions you need to meet.
The £2 million taper trap, and why larger estates can begin to lose the Residence Nil-Rate Band, potentially increasing the amount of Inheritance Tax your family pays.
Ways to structure your estate more effectively, including reviewing your will, gifting surplus assets, considering life insurance written in trust and planning carefully around property ownership.
Common mistakes to avoid, including simply giving your home to your children while continuing to live there, which can fall foul of the Gift with Reservation of Benefit rules.