When to stop paying IHT GWR rent?

[redtape]

Please could you help resolve this IHT planning question, as we have been given two answers so far: continue with paying rent; stop paying rent.

Myself and my brother have been given 50% of our widowed mother’s house (25% each) (in 2012) as part of our family’s IHT planning. To avoid GWR, ever since the gift she has paid us a market rent for 50% of the house. She has moved out of the house and into a care home (initially temporarily and now in the last few months it is clear that this will be a permanent arrangement). We have been given conflicting advice as to whether she should continue to pay the rent on the now empty house. We don’t want to fall foul of GWR clawback when the time should arise.

As a follow up, if she should stop payments, should we repay the rent back to her from the date that she went into the care home?

Many thanks for your advice.

[AGoodman]

If the house is completely empty then she can stop paying rent as she is not receiving any benefit from it. I would be cautious about reimbursements as you don't want to give the impression that the arrangement was less than formal. Ideally you would terminate her use of the property in writing.

If the house still contains her furniture then it could be argued that she is still using the property to store her effects and you are on shakier ground.

[redtape]

Thank you very much for your reply.
The answer is that the house is currently full of furniture and contents.
So it sounds like we should clear the house before the rent is stopped.
Many thanks!