Readers' forum : Sister act

My sister-in-law who has no spouse or children is buying a retirement flat for £800 000 and is selling her unregistered house for £570 000 in which she has lived for the past 82 years.

She intends to leave any property she owned to her sister (my wife) but also wants to leave specific bequests of £100 000. She has assets of £200 000 as well as this house so we will probably have to assist with the purchase.

We would like to explore the possibilities for mitigating any stamp duty land tax inheritance tax and any other liabilities on her death but retain the ability for her to leave specific bequests while having sole occupancy of the flat when she is alive. In addition the retirement property management company would apply a 1% charge on the notional value for subsequent change of lease other than...