Nick3609

This query is about planning to reduce Inheritance Tax. My wife and I live in our home which is owned solely by my wife. Our adult son also lives with us. My wife will transfer the property to our son as a gift. My wife and I will then move to a new home that we will buy with our resources. There may be an interval of many months between transfer of the property to our son and us moving out. This is because we want to transfer as soon as possible and in advance of having purchased a new property in order to start the clock on the seven year rule. To avoid the gift becoming a "gift with reservation", we will pay a market rent to our son while we remain in his property during the time that we are looking for a new home. If my wife survives for seven years after transferring the property to our son then the property will no longer be part of her estate. Is my understanding of the HMRC rules on IHT correct?