Gift with reservation

[sjmanchester]

Hello,

If my father were to transfer ownership of a property that my mother lives in rent free (they are separated) to my sister, aside from the CGT implications, would this be considered a gift without reservation for 7 year rule/IHT purposes? I’m assuming my sister, upon taking ownership of the property, is at liberty to have who she wants living there as long as it’s not my father.

Thanks
SJ

[maths]

your father will not have made a gift with reservation.

It will be a PET and thus within his estate (as it were) for 7 years.

Your sister can do what she wants.