Skip to content
Ask an Estate Planner

Gift with Reservation (GWROB)

A gift where you continue to benefit from the asset. The gift doesn't work for inheritance tax - the asset stays in your estate.

A gift with reservation of benefit (GWROB) is a gift where the giver continues to benefit from the asset. For IHT purposes, the asset is treated as still belonging to the giver.

Common Examples

  • Giving your house to your children but continuing to live there rent-free
  • Giving money but keeping the interest payments
  • Giving shares but keeping the dividends
  • Giving a car but continuing to use it

Tax Consequences

If you make a GWROB:

  • The asset is treated as part of your estate when you die
  • The 7-year rule doesn't apply
  • The gift fails for IHT purposes

Making a Gift Work

To avoid GWROB rules when giving your home:

  • Move out completely and permanently
  • Or pay full market rent to continue living there
  • Keep records proving you pay fair rent
  • Then survive 7 years for full exemption

Common questions

Can I give my house away and continue living there?
Only if you pay full market rent. Otherwise it's a gift with reservation and counts in your estate for IHT.
What if I pay some rent but not market rate?
The gift with reservation rules still apply. You must pay full market rate rent for the gift to work.
What about giving money but keeping it in my account?
That's not a gift at all. A gift must involve actually transferring control of the asset.
Free & independent

Compare estate planning quotes in 2 minutes

See up to 4 matched verified UK planners, ranked cheapest-first. No obligation, no hidden fees.

Compare prices

Related terms