My late in-laws owned several properties, including their own home. In 1987 mother-in-law gave her 4 children a rented flat, and they continued to rent this property out. In 1999, father-in-law died: Mother-in-law initially wished to stay in her own home, but suffered health problems so that in late 2000 the 4 children offered her the opportunity to move into the flat she had given them 13 years earlier, so that she could manage more easily. It was agreed that she would pay council tax, the maintenance charge and all expenses, but they would not charge her rent. In following years the children would frequently take it in turns to stay with her overnight, as well as during the day, to provide care as necessary. In April 2017 this became too much, and she moved into a care home where she died in late May.
The solicitor dealing with probate insists that this represents a 'Gift with reservation of benefit' although the 4 children had run the flat as an investment property for 13 years, and no 'reservation' was intended - it was simply that, in caring for their ailing mother, this arrangement made most sense, but there was no pre-plan that she should move there.
The solicitor is stating that although the flat does not form a part of the Estate, it must be declared at current value for IHT purposes.
I should greatly value all opinions and guidance regarding this situation.
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