MG Legal Solicitors 
Longridge: 01772 783314 Garstang: 01995 602129 Lancaster: 01524 581306 Lytham: 01253 202452  
Two people passing a wrapped gift between them; our Conveyancing Solicitors in Lytham discuss the pros and cons of gifting property to your children during your lifetime.
Gifting your house to your children can seem like a generous and straightforward way to pass on a significant asset to your loved ones. However, it's a decision that comes with various implications – both positive and negative. This blog post delves into the key pros and cons to consider before making such a significant financial decision.  
Before you read on, remember you should always seek independent financial and legal advice before making such a significant gift, as the implications listed below only cover general examples, and our Conveyancing Solicitors in Lytham would always need to tailor advice to your specific circumstances. 

Fixed-fee Conveyancing Solicitors

MG Legal's leading Conveyancing Solicitors in Lytham offer all of our Conveyancing services on a clear, fixed-fee rate.  
Our team put your first, and work with care to ensure that your wishes are met. Call us today on a free, no-obligation basis at: 01253 202452. 
Get in touch today to speak to our Conveyancing Solicitors. 


Many of the Pros of gifting your house to your loved ones are based on the emotional reward, but our Conveyancing Solicitors in Lytham have set out some of the possible benefits you may see in gifting your property. 

Avoiding Probate 

Gifting your house can simplify the estate process by avoiding the need for your estate to pass to Probate, ensuring a smoother and quicker transfer of property to your children, during your lifetime. 

Potential Tax Benefits 

If you are not living in your house and your estate is taxable, gifting it away could help reduce the Inheritance Tax liability on your estate, if you survive for 7 years, and have made no other gifts of value which could impact the available Nil Rate Bands. 

Emotional Rewards 

You may not use your property, and gifting it to your children may give them the security that you feel they need. This can be rewarding to feel like you’re helping your children when they need you. 

Legacy and Family Continuity 

If you no longer have a need for your house, but you want it to stay in the family, this could achieve that, and allow your loved ones to continue having use of the family home. 


It’s much easier for our Conveyancing Solicitors in Lytham to discuss the cons of gifting your property, as there are unfortunately, for many people, more of them. 

Loss of Control 

Once gifted, you lose legal rights to the property. You have no right to live there, no right to any income from renting the property out, and no right to sell and move house. Indeed, if your children pass any of these rights to you, for example if it was rented out and your children pay the income to you, this could have implications for you and your children in respect of tax. 

Potential Relationship Strain 

This arrangement can lead to family disputes, especially if not all children are treated equally or if their life circumstances change. Once you have gifted your property, you cannot change who the owners are unless your children agree. Even then, it would be them making the subsequent gift, which could have a myriad of implications for them, which they would need to take advice on. 

Financial Implications for You 

Gifting your house might affect your financial security, especially if you rely on the property as a primary asset. As above, you would have no right to live there; we always hear that people trust this children and know they would not ‘kick them out’.  
Fortunately, in the majority of cases this is true, however, our Conveyancing Solicitors in Lytham do have experience with cases where this has, sadly, not been the case, and people have fallen out with their children and subsequently regretted making such a gift. 

Tax Implications for Your Children 

Depending on their current position, your children might face capital gains tax if they sell the house, as they wouldn't benefit from the primary residence exemption. In addition, if they later rent the property out- even to you- they would face income tax liabilities, and possibly inheritance tax issues on their death. 


Above, we discussed that your executors of your Will wouldn’t need to apply for Probate to transfer your house. However, if you continue to live in the property at less than market value rent, your estate could be liable for a gift with a reservation of benefit, thus creating Inheritance Tax implications for your estate. This could still lead to an Inheritance Tax account needing to be submitted, and an Inheritance Tax liability payable from your estate, even if you don’t have any other assets. 

Care Home fees 

Many people have the common misconception that when they make a gift of their property, after 7 years, it can’t be ‘claimed back’. This is not the case, and our Conveyancing Solicitors in Lytham would not assist you with a property transfer if they believed it was with the sole purpose of avoiding care home fees. Indeed, this is a deliberate deprivation of assets, and there is no 7-year rule in place; if the local authority believe you have deliberately deprived yourself of your asset, they can apply to have the value brought back in for care home fee assessments. 

Legal and Financial Considerations 

It’s crucial to consult with both Conveyancing Solicitors and a Financial Advisor to understand the implications of gifting your property fully before you decide to proceed with such a gift.  
In fact, our Conveyancing Solicitors in Lytham always insist you have full advice before you make such a gift, to ensure you are aware of all implications. Laws regarding property gifting vary greatly and can have significant tax implications. It’s also important to remember that the tax rules could change in the future, so the unknown impact of these should be considered. 

Why choose MG Legal Solicitors? 

No hidden fees.

Transparent fees. 

Our solicitors offer their services on a clear fixed-fee or hourly rate, and accept personal injury claims on a no win no fee basis. 
We are the experts

We are the experts. 

Here at MG Legal, our team of friendly solicitors are fully-qualified and have over thirty years' experience in helping clients just like you. 
Regular Communication

Regular communication. 

When you work with MG Legal, your solicitor will be in regular contact so you have step-by-step updates. 
Multiple Office locations.

Multiple office locations. 

If you are looking to instruct our solicitors, we have offices in Garstang, Longridge, Lancaster and Lytham for your convenience. 
Gifting a house to your children is a decision that should be made with careful consideration of both emotional and financial factors. It’s not just about the value of the property, but also about the long-term implications for both you and your children, and these should be considered fully and carefully before you take any further steps. 
If you're considering gifting your property, start by discussing it with your family and seeking advice from both legal and financial professionals. Open communication and expert guidance are key to making an informed and beneficial decision, so that you’re aware of all the implications before you proceed. 
If you do need advice on making a gift of your property to your children, contact our Conveyancing Solicitors in Lytham- or indeed your local office: Garstang, Lancaster, or Longridge (Preston), using the contact us form, below. 

Why choose MG Legal, Conveyancing Solicitors in Lancaster? 

Clear, fixed-fees 

Fully-Qualified Conveyancing Solicitors 

Tailored Service 

Multiple Office Locations 

Decades of Experience 

Home Visits 

Share this post:

Leave a comment: 


Our site uses cookies. For more information, see our cookie policy. Accept cookies and close
Reject cookies Manage settings