Gift Inter Vivos

Marco's Blog

Are you looking for the best Gift Inter Vivos Insurance policy on the market? Would you prefer truly Independent Financial Advice for your Inheritance Tax (IHT) planning needs, rather than simply being sold a product? Are you after the cheapest deal for a Gift Inter Vivos policy?

Have you used up all your IHT allowances? Are you aware of your options when covering Inter Vivos Gifts? Have you considered what sort of Trust arrangement would be appropriate your Gift Inter Vivos policy? Would you like impartial advice in this area?

We can help! Contact us for a free consultation to discuss your family's Inheritance Tax needs. We offer totally Independent Financial Advice.

Gift Inter Vivos Policies

A common approach employed to eliminate an Inheritance Tax (IHT) liability is simply to decrease the size of an estate before death. Gifts that are made during one's lifetime are known as ‘Inter Vivos' gifts. The gifts will remain tax-exempt for IHT purposes, as long as the donor lives for seven years after the gift is made.

Of course, there is always the risk that the person making the gift may die within the seven-year period. So the donor will often take out a Gift Inter Vivos Life Assurance policy to cover the cost of the tax payable, should they die within that period.

Gifts Inter Vivos policies are a type of Decreasing Term Life Assurance Policy and will run for seven years. The policy is normally set-up in Trust, to ensure that the funds fall outside the donor's estate for Inheritance Tax (IHT) purposes. The beneficiaries are normally the heirs to the estate.