Here comes a mortgage which children can inherit along with the home when their parents are no more. House owners could opt for an interest only mortgage and pass on the home and repayments to the kids and cut the inheritance tax. The home and the loan could be passed from generation to generation as long as the beneficiary met the payments.



This has its downside too. The company would continue to own a large chunk of the house and each beneficiary would be left with a large mortgage as interest on the loan only has to be paid. The children would certainly not find this prospect appealing because rather than inheriting the property they would be inheriting debt. I think it would certainly not work.