Thank you for your question
My name is ***** ***** I shall do my best to help you.
1. Yes if you survive 7 years then it will not form part of your Estate on your death
2. No i am afraid that if they use it to purchase a flat in which you live rent free then that will be seen as a"gift with reservation of benefit" and it will still form part of your estate.
3. Yes that could work
Please ask if you need further details