How to UK avoid inheritance tax?
Don’t go for Hales’ suggestion, your parents could end up with massive Capital Gains Tax bills doing it that way, even if no money changes hands. Also if your parents wanted to stay in one of the properties (which I would assume is their main home) they would have to pay you an economic rent, otherwise the transfer would be disregarded for IHT purposes. You also have to consider that if one of you was to get divorced or bankrupt, they could lose their home, and you at least half your asset. The transfers would also have to be made at least 7 years before the deaths to avoid IHT. Think about creating a Trust, and consult a good financial advisor. That costs, but it is worth it.
