US relative and inheritance tax

Hi all,

I'm not actually an expat but my Gma is, and I have a question about inheritance tax that I thought you might be able to help with as it has been really hard to find people who understand both systems!

1.

I would like to give my grandmother 500k to help her in old age. I think there is no issue with iht here as long as I do not die within 7 years as it will be a potentially exempt transfer (pet)

She would like to gift me her house, and pay me rent for 7 years to enable her to continue living there. Again this looks OK as a pet from the policy online.

Question : does this sound sensible and would it risk being looked on as not a market rate arrangement because I have given her money?

2.

My grandmother is a US citizen and keen to remain so as it is part of her identity, but she's lived here for more than 50 years

Question : Is she able to give me the house  and receive the 500k from me without needing to pay taxes in the US?

Any help much appreciated

Par

Thanks Guya, super helpful, appreciate the response

As I understood it, cgt would not be payable due to it being her main residence. Grob would not apply due to her paying market rent to me. And deprevation of assets would not apply due to her not seeking gov support for care costs.

Have I missed something there?

Thanks for heads up on afr, I didn't know that, but would seen doable. Id also be paying tax on the rent. Considering setting up a company to try to limit this to 20% of repayments.

Do you have any recommendations of good lawyers who understand both systems?

She doesn't have an lpa, she's been thinking about all sk this stuff too but finds it complex and hasn't identified a good lawyer - reccs appreciated!