A relative lives in a house worth c550k outstanding mortgage around 150k. He also has 2 other rental properties combined value approx 600k, mortgages almost finished. He has two children under 10. There is also small cash deposits earning v little. He has about 10 years left to retirement. He is saving for their second/third level education and anticipates he will be able to provide for that. The question relates to his Will. Can he leave his house directly to one of his children and would that be inheritance tax free ? If he died before they were 18 would this be doable ? His wife would live there also until she passes. Is this possible to leave her one of the other properties ? She would be financially secure with own pension and savings etc He understands the threshold is around 330k from father to child. The other property could be left to the second child with some cash. He is anxious to simplify arrangements for his wife. They are in agreement that the kids should be prioritised. A tax advisor has suggested that he consider a s72 policy. He intends to retire in around 10 years. There won’t be much cash left for the children to inherit after they are educated and he has funded his own retirement costs. Is a s72 worth considering or should he just give them gifted amounts over the years if there is some excess after expenses.
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