GROB if testator pays full market rent but dies within 7 years

Trusts Discussion
1

Hi all,

Where a testator gifts his house to his children and pays a full market rent up until death, but dies just shy of 7 years after the date of the gift, would the transfer of the property be a failed PET?

Many thanks

2

Yes, paying rent avoids a GROB but not the transfer of value.

If the transfer (aggregated with any others) is more than £325,000 then you may be able to take the benefit of the rate reduction to 8%.

3

Thank you so much Andrew.