Please can someone tell me if the following is legal / sensible or could be done more effectively.
My parents own there own house with a value of about £80k. My mother is retired and my Dad is soon to be retired. They have effectively no income and so are in receipt of income support (soon to be pension credit) and other state benefits.
I am looking to buy an investment property for around £120k.
I want to allow my parents to live in my investment property rent free for the rest of their lives but I don't want them to loose any entitlement to benefits as a result of an influx of capital from the sale proceeds of their own home.
If they were to gift the proceeds of their sale to me as an irrevocable gift could I then gift it back to them as and when they need it so long as their total savings remained under the £6000 savings threshold for benefits?
I would buy the investment property myself and would place their gift to me into a savings account so as to not have a reservation of benefit.
I understand that there could be an impact on my IHT liability should I die and also on any income from the savings account. I am happy that my own estate would cover this. It's time for me to repay my parents for my upbringing but is this proposal workable or is there a better way?
Thanks in advance for any help
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