IHT: Adult child living in parents' home

Sterlingtimes

An adult child lives in a home owned by his/her parents. The parents would not dream of charging the child rent or demanding compensation for household expenses or food. Furthermore, the parents say, "You are free to use our car when we are not using it".

Out of interest, is there an IHT position on this?

Keep_pedalling

None whatsoever.

Sterlingtimes

Keep_pedalling said:

None whatsoever.

Thank you for your quick and reassuring response.

Bookworm105

the parents remain the owners. When they die IHT may apply depending on the size of their estate.
The property will be included in their estate but (it appears) will get main residence relief

the fact the child lives there is irrelevant, as is their usage of any parental assets 

Jeremy535897

It depends. See:
https://trustsdiscussionforum.co.uk/t/iht-consequences-of-rent-free-tenancy/18119/7

Sterlingtimes

Jeremy535897 said:

It depends. See:
https://trustsdiscussionforum.co.uk/t/iht-consequences-of-rent-free-tenancy/18119/7

Thank you. My scenario addresses the parents' main property, where they also reside. I suppose that a "mere licence" is created. Free rent, free food, free petrol, etc., reduce the parental assets and enrich the child's. The opinion here is that there is no IHT consequence albeit that this may create an IHT advantage.