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Gift with reservation

What is a Gift with reservation?

A gift with reservation is a gift that has been given with the person giving the gift still receiving the benefit. For example if you gave your home away to your children yet still lived in it rent free. If your gift is considered a gift with reservation it will still form part of your estate and be treated as if you have not given it away.

A house that you still live in without paying the going rate for rent is a common gift with reservation.

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