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As she continued to occupy the house the difference in value was a gift with reservation and must be so declared on the IHT forms and be taken into account in valuing her estate for IHT purposes. IHT does not kick in until 325K in any event and any charitable bequests inflate that limit.
I do hope that you have found my reply of assistance.
Which, had you entered it, would have increased the estate's value for IHT purposes. A typical HMRC ploy to amass more revenue.
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