This thread maybe ought to be merged with the other one.
Seems to me the best solution would be to transfer the home, leaveing a life interest to the parents. Then there is no CGT.
And of course there would be no CGT on the rental home if it had not increased in value. So that should be transferred during the next property crash.
Personally I’d want good legal advise before transferring assets to children as I’m loath to do that.
As the transfers are to avoid nursing home fees then it is absolutely crucial that legal advise in writing is acquired.
As it happens I had an aunt who had chronic alcoholism, so my grandfather left her the family home as a life interest only. When she developed dementia and needed to move into a home the stare paid for it. (Aunt had no assets, income or off spring). Not sure if that is the ‘fair deal scheme’ or not. But paperwork on the life interest had to be proven to the HSE.
OP would be well advised to ask what are the potential downsides of asset transfer.