It is fairly well known that a GWR can be avoided in certain circumstances - one being where the donor continues to receive a benefit (such as rent) but does not occupy the property.
But how does this work in practice? Presumably, when the donor is minded to make the gift of the rental property to, say, his children, there cannot be a formal agreement to pay the rent to the donor - this would create a right to income and thus a trust (I think?) and put the asset into the relevant property regime (and possibly give rise to immediate IHT).
Am I right in thinking that, where a parent wants to gift a rental property to children and retain the income, he must simply rely on the good faith of the children to continue to pay the rent?
Anyone done this in practice?