To quickly recap on the key inheritance tax rules – every homeowner has two inheritance tax-free allowances. When the original owner gives their property away, they lose legal control over it. Four key scenarios could put the person giving away the property at risk, Walkley pointed out; disputes, debt, divorce and death. Inheritance tax property gifting rulesGiving your home away while continuing to live in it is also one of the biggest inheritance tax misconceptions – it doesn’t automatically mean your loved one avoids inheritance tax. Alternatives to grandparents giving away propertyBefore taking the huge step of giving away your home (or another property) to your grandchildren, it is important to establish whether gifting property before death is even necessary.