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Hi, I'm afraid adverse possession applies only in cases where a party occupies a property WITHOUT the consent of the paper owner. As consent has been granted to your sister to live in the house, it is not adverse. You are free to gift the property, but as you may know, you will still be potentially subject to Capital Gains tax based on the current market value of the property. I'm sorry this is not the answer you were looking for, but it sets out the legal position. Kind Regards Al