Gift Inter Vivos Insurance is a form of Term (life) insurance that covers the potential Inheritance Tax (IHT) liability created when someone gives a sum of money or other assets away while they are alive.
Upon death, IHT is paid on any part of your estate that exceeds the ‘nil-rate band’, a threshold that currently stands at £325,000 (i.e. £650,000 for couples). The current rate of IHT is 40%.
Gift Inter Vivos insurance policies are 7 years in length and are tailored to track the liability for Inheritance Tax (exempt after 7 years from the date of the gifted sum). The insurance decreases in line with the IHT liability it is covering. The sum assured is only payable upon death during the term.
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The cash lump sum that is payable on death reduces over the term of the plan as follows:
Policy Year % of Initial Cover
1 100
2 100
3 100
4 80
5 60
6 40
7 20
To speak with one of our advisers, who will be happy to discuss your Gift Inter Vivos insurance policy options and provide you with a quote from one of the UK’s leading insurers, please call us on Freephone 0800 644 4468, or click here to complete a short enquiry form and we will then contact you at a convenient time.
The levels and bases of taxation, and reliefs from taxation, can change at any time. The value of tax relief depends on individual circumstances
