IHT - my home or the wife's??

[grossey]

We have been married 18 years - I'm 72 she's 49. Prior to our last house move five years ago our homes were always jointly owned and mortgaged with bills paid from a joint account. On our last move, I took the decision to take my name off everything (for simplification and bearing in mind my age) so our house, mortgage and all household bills are in her name. We have no joint account & I just pay my share of house costs into her current account (the monthly DD into her account would be more than the total economic rent of the house).

My question is relatively simple but I haven't been able to find an answer on the internet. Even though I have no legal interest in the house, would the IR count 50% of its value for IHT purposes as a charge against my estate? The answer is crucial for me because if the answer is YES I will need to consider what I do with my investments (totalling slightly below the tax-free threshold of £325k) that are currently willed to my children. I would be very grateful for an answer.

[AGoodman]

No. You gave it to your wife (exempt transfer) and the reservation of benefit rules do not apply to an outright exempt transfer.

It would not actually matter if you owned 50% provided you were leaving it to your wife under your will. It would all be exempt from IHT on your death