I appreciate that this isn't a common scenario, but I would be grateful if someone could possibly advise how to go about arranging this:
I understand that if a parent has adult offspring living with them at home there is a way to mitigate inheritance tax. This particular question concerns a sole surviving home-owning retired parent, with unmarried daughter (only child) living at home.
I understand that a joint tenancy needs to be arranged, then the 'child' so to speak, has to contribute towards household expenses in some way to validate the arrangement.
Assuming that this is the case, in the eyes of HM Revenue & Customs, are there any specific requirements with regard to the actual financial contribution of the daughter that need to be satisfied (proof of contribution etc)?
Finally, could the daughter spend their Â£3000 tax-free annual gift allowance from the parent on the required financial contribution of household expenses without upsetting HMRC?
The difficulty here is that the daughter has very limited finances, so it would be nice to help her fulfil any financial requirements under the supposed arrangement.
Many thanks in advance and apologies if I have been long-winded with my questions.