If she leaves the home to anyone but a spouse (husband, wife or civil partner), it counts towards the value of her estate.
From 6 April 2017, she’ll get a bigger Inheritance Tax threshold if she leaves the home and it is her main home, to her children (including adopted, foster or stepchildren) or grandchildren.
If she gives the 2 children the home before she passes away then a time must be met.
There’s normally no Inheritance Tax to pay if she moves out and lives for another 7 years.
If she wants to continue living in her property after giving it away, she’ll need to:
If the estate’s worth less than £325,000 (that is the threshold) then she would not have to worry about inheritance tax.
She can leave them the home or give it now.