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When she passes, are you likely to be the only beneficary? Thinking out loud, so this maybe somewhat flawed. If so, then maybe she sells, and buys another property like you suggested with a Granny Flat. She lives in the flat, you in the house. You pay her 'board' to live in the house (equal...

:confused: I'ts not my thread. :D

I'd check into the deeming rules, before you suggest she downsize her PPOR too, and possibly look into other forms of income for her, if that's a possiblility.