First of all, despite what the bloke down the pub may say, it is not as simple as transferring ownership from your parents to you. That would be regarded as a Gift With Reservation of Benefit ("GWRB"), making the transfer ineffective for Inheritance Tax purposes. What you must do, in addition to transferring the ownership of the house, is to draw up an agreement for your parents to pay you, as the owner of the property, a full market rent - this avoids the GWRB issue. Two other things to keep in mind: 1. Depending on the values involved, the combination of the Nil Rate Band and Residential Nil Rate Band may mean that there is no Inheritance Tax liability. Do your calculations before going to the effort and expense of a property transfer and rent agreement. 2. The value of the house will not leave your parent's estate immediately. It will be a Potentially Exempt Transfer, meaning that your parents must survive longer than 7 years after making the gift for it to be fully effective (tapered rates of Inheritance Tax apply if they do not).