Telephone Number
01454 633 289

Gift Inter Vivos

Gift Inter Vivos

What is a Gift Inter Vivos Policy?

Gift Inter Vivos Insurance, also known as Tax Liability on Inheritance insurance, is a form of term Life Insurance designed to cover potential Inheritance tax liability that can be created when someone gifts a present of high value. Gift Inter Vivos plans run over a seven year term and decrease in value to track the inheritance tax liability being covered.

The law currently states that you can give away gifts of up to £3,000 per tax year and these gifts will be exempt from inheritance tax. However If you give away a gift of high value and pass away within seven years of donating this gift, it may be liable for inheritance tax.

Gift Inter Vivos plans will pay out a lump sum should you pass away within these seven years to cover the inheritance tax. Below you can see an example of how this policy will decrease in value. This is called “Taper Relief”

 

Policy Year Percentage of Initial Cover Payable Cover
1 100% £150,000
2 100% £150,000
3 100% £150,000
4 80% £120,000
5 60% £90,000
6 40% £60,000
7 20% £30,000

When insurers look to underwrite a Gift inter Vivos policy they take into account the same key factors as they would with a standard life insurance policy, some of which are below:

  • Cover Amount
  • Age
  • Smoking Status
  • Occupation
  • Health

If you would like more information or would like to obtain a Gift Inter Vivos quotation, simply click on the button below, fill in some details and we will provide you with a Gift Inter Vivos quotation.

To get a better understanding of our process and how Gift Inter Vivos can help with inheritance tax avoidance give our specialist life insurance team a call on 01454 633 289. Alternatively, obtain a Gift Inter Vivos quote.

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Telephone Number
01454 633 289

Benefits

  • We can provide better rates than going direct to an Insurer
  • We are not a call centre – we are a small dedicated business with years of experience
  • Friendly, personal service