Grandma renting

oldbikebloke

as per the above link, the gap between the date of the money transfer and grandma moving in is irrelevant. Silvercar's idea would fail. It is her money that paid for (contributed to) the place she will live in. 

you misunderstand the relationship between POAT rule and the GWR (gift with reservation) IHT 7 year PET rule

if it is a POAT, grandma will have to pay market rent every day she lives there. Only were she to permanently move out would the POAT end, and the PET 7 year clock would start ticking as she has then gifted "her" house to you as an "ordinary" gift from which she get no benefit, so there is no GWR element to the gift.  if there is a GWR then it never leaves her estate and the 7 years is irrelevant 

DMartinJones

Thank you all.

Considering MIL (Grandma) has placed no conditions on her money that she has gifted:  In terms of us exploiting the 7 year gifting rule (Grandma does not wish HMRC to have her money after her death), would we be better placed if Grandma lived in a bungalow near us (not with us) or would we be ok if she did live with us & paid the going rate of rent.  This is an important question, in that if monies need to be found for a bungalow for Grandma then we will need a mortgage.  If Grandma lives with us (& lives another (nearly) 5 years) & pays rent, then we will not need a mortgage.