Hello
A new client has contacted me as she and her brother have inherited a property and wish for another relative to remain living in the property for life, whilst only paying a small amount towards expenses. The property was inherited over two years ago and therefore a Deed of Variation will not be effective for IHT and CGT purposes.
I initially considered creating a settlement by way of a Life Interest Trust, however the tax implications of this (I believe treated under the relevant property regime under the circumstances) are not favourable.
If they create a tenancy over the property with the relative paying only a small amount of rent (towards outgoings) what are the implications? Any other suggestions would be greatly appreciated.