Can I use a Lifetime ISA if I inherit a property as a minor?

The solicitor handling the estate will be the best person to advise, but some general principles may help.

A minor can inherit property, but they cannot hold the legal title in their own name until they turn 18. The property would usually be held on trust for them until adulthood.

If your mum were appointed as a trustee, the trustees may be able to obtain a mortgage secured against the property. However, lending involving trusts and minor beneficiaries can be more complex, and some lenders may treat it as a specialist arrangement.

When you turn 18, and the property is transferred into your name, there is normally no Stamp Duty Land Tax (SDLT) to pay if it is simply the transfer of an inherited property. However, if you take on responsibility for an existing mortgage at that point, the outstanding mortgage balance can count as “chargeable consideration” for SDLT purposes.

In terms of first-time buyer status and Lifetime ISA eligibility, if you have held a beneficial interest in residential property (even via a trust), you are likely to lose first-time buyer status. That would usually mean you could not use LISA savings penalty-free for a future property purchase.

In short, this can become legally and financially complex, so it would be important to take advice from a solicitor before any structure is put in place.