7 Yr Rule options : Passing of Property, Shares and Cash

[S99]

Hi all,
Please can general advice be given as my father is thinking of putting his house into my name and I move in with my husband, but what is most tax efficient use of 7 year rule now and in the future using the following information :
a) House, no mortgage, worth anywhere between £0.9m to 1.2m
b) He has shares worth £0.5m
c) Bank accounts of £0.5m
My mother passed away some 15 plus year ago and nothing came to me at that time, therefore can be assumed her full allowance is available (£325k plus current residence allowance for 2018/2019 of £125k). Father in good health but in his 80's. I own my own home outright and would either sell or rent out.
Many thanks in advance as aim is to give him general advice first.
C

[AdamS93]

Your plan is probably caught by the gift with reservation of benefit rules.

With the amount at stake, you should see a few hundred pound for some tailored professional advice as an investment.

[AnthonyR]

As Adam mentioned, this is likely to be a gift with reservation of benefit, so unlikely to be effective at all for IHT purposes unless he pays you the market rent for the house (which over time can be just as expensive as IHT for a 40% taxpayer).

However, joint ownership can be effective if you all live together (throughout the entire 7 years before his death - not 7 years after the gift) and consequently giving away less could save you far more in IHT. However, it has to be handled correctly and as Adam mentioned advice should be sought to make sure that any planning is effective.

[S99]

Thank you for the quick response and it does seem that reservation of benefit is one issue to be discussed, i.e. paying of rent. Agree some professional advice is needed, just wanted to get my thoughts first to at least prepare my father. Was thinking that better to transfer shares and/or money above the £325k allowance then use the seven year rule, hopefully, and leave the house part to IHT and Residence Allowance as who knows what will happen with house prices. Thanks again.