11 Purdeys Way, Rochford, England, SS4 1ND
11 Purdeys Way, Rochford, England, SS4 1ND
For Financial Gifts & IHT Protection – Compare Quotes from the UK’s Leading Gift Inter Vivos Specialist.
Best Price Guarantee
Whole of Market Access
FCA Authorised Advice
When you gift a large sum of money (typically over the £3,000 annual exemption), it may be subject to Inheritance Tax if you pass away within seven years. This is where Gift Inter Vivos Insurance can help. Gift Inter Vivos Insurance is a type of life insurance designed to protect financial gifts from Inheritance Tax (IHT) if the person making the gift dies within seven years. This insurance helps cover that potential tax bill, ensuring your loved ones receive the full value of your gift.
A Gift Inter Vivos policy can be taken out by you to help protect the financial gift for the recipient. However, the insurance will only protect the financial gift if you pass away within the seven-year window, and the cover reduces each year to align with the IHT taper relief rules.
Gift Inter Vivos Cover is a practical solution to help you protect financial gifts from potential Inheritance Tax (IHT) liabilities if you should pass away within seven years. This type of insurance policy ensures your loved ones receive the full benefit of your gift, without facing unexpected tax bills. It’s a good idea to consider Gift Inter Vivos Insurance if you plan on gifting significant sums, property, or assets. As part of your estate planning, you may also want to explore other protection options, such as Life Insurance and Income Protection Insurance.
Key Person Insurance is a vital form of business protection. It ensures your company remains financially secure if a team member unexpectedly dies or becomes critically ill. Your company can safeguard against the sudden loss of a key contributor, navigate challenging transitions smoothly and protect future growth with the help of Key Person Insurance.
You may also wish to take out relevant life Insurance for your employees. If an employee or director dies or develops a terminal illness, the insurance will pay out a lump sum to their beneficiary.
A financial cushion to cover potential losses in revenue, recruitment…
A form of life insurance that help pay off your outstanding debts…
In the event that you die within seven years of giving someone a financial gift, a Gift Inter Vivos policy is designed to cover the potential Inheritance Tax (IHT) that the recipient may face. As the amount of tax reduces after year three, the Gift Inter Vivos cover will also decrease as it nears the end of the policy. If you pass away during the insurance term, the recipient will receive a lump sum to help them cover the subsequent Inheritance Tax.
This type of policy is a smart addition to your estate planning strategy and pairs well with Whole Life Insurance and Family Protection Insurance. Getting insurance in place helps give you piece of mind that your loved ones will be financially protected should you pass away.
If you want to leave your loved ones a financial gift, whether it’s money, property or assets, a Gift Inter Vivos policy will help protect them from a possible Inheritance Tax (IHT) bill should you pass away within seven years of gifting.
While you won’t directly benefit from the insurance, Gift Inter Vivos cover ensures your beneficiaries aren’t left with a surprise tax bill. You may want to consider this type of insurance if you are planning on giving a financial gift that exceeds your £3,000 annual IHT exemption. It’s particularly useful for parents and grandparents making large gifts during their lifetime.
Getting a Gift Inter Vivos policy in place will help give you added peace of mind that your loved ones will be financially protected should you unexpectedly pass away. This type of insurance helps cover any Inheritance Tax and ensures the recipient receives the value of the gift in full, without facing the financial pressure of a surprise tax bill.
Gift Inter Vivos Insurance is specifically designed to align with HMRC’s 7-year gifting rule and taper relief, which means your estate will stay compliant, while also minimising its tax exposure.
Sarah is 68 years old and wants to help her daughter buy a home, so she decides to give her £300,000 as a gift now rather than leaving it in her estate. Because the gift exceeds the inheritance tax nil-rate band, there could be a potential tax liability if Sarah dies within seven years of making the gift.
To protect her daughter from this risk, Sarah arranges a Gift Inter Vivos Insurance policy. The cover is designed to match the inheritance tax liability, which reduces over time thanks to taper relief. The longer Sarah survives after making the gift, the lower the potential tax bill for her daughter.
For example:
Let’s say the taxable portion of the gift (after using any available nil-rate band) is £75,000.
If Sarah were to die within the first three years, the inheritance tax on that gift would be charged at 40%, creating a £30,000 bill.
A Gift Inter Vivos Insurance policy written in trust would cover this liability, paying out £30,000 directly when needed so her daughter isn’t left with an unexpected tax bill.
If Sarah dies in the fifth year after the gift, taper relief reduces the tax rate to 24%, so the liability falls to £18,000, and the policy payout adjusts accordingly.
This example shows how taper relief reduces the inheritance tax over time, and how insurance can be tailored to match this declining liability.
When you make a large gift during your lifetime, it may still be counted towards your estate for Inheritance Tax if you die within seven years of making it. This is because HMRC wants to prevent people from giving away their entire estate on their deathbed to avoid tax.
However, the potential tax bill on that gift reduces the longer you survive after giving it. This reduction is called taper relief. It doesn’t eliminate the tax on gifts below the nil-rate band (£325,000), but it reduces the rate of tax on gifts over that threshold if you live more than three years.
In other words, the tax liability “tapers off” over time. This makes it easier for people to pass on wealth during their lifetime without leaving their beneficiaries with a large, unexpected tax bill if they die several years after making the gift.
Here’s how the Inheritance Tax rate on lifetime gifts reduces over the seven-year period:
It couldn’t be easier to get a Gift Inter Vivos Insurance quote with My Keyman Insurance. We’re here to help ensure your financial gifts are protected and that your loved ones don’t face large Inheritance Tax bills in the unfortunate event that you should pass away within seven years of gifting.
Apply for a Gift Inter Vivos Insurance quote today. And why not take a look at the other cover options, including Relevant Life Insurance and Key Man Insurance too?
Quote & Apply Online in 3 Simple Steps.
Submit the details of the key member of staff
Compare the quotes online
Fill out the application and get covered today.
Jody was very helpful in explaining the options and I thoroughly recommend his company
We received a wonderful service from mykeyman and will be using them again. The service and product knowledge from team is excellent. Everything was made easy to understand. The price was the best we found too.
The standard of service was first class. They kept me up to date with progress on my Relevant Life Policy, followed up promptly following delays caused by my medical practice being slow in compiling reports, and responded instantly and clearly to any questions I had.
Jody was very helpful in explaining the options and I thoroughly recommend his company
The standard of service was first class. They kept me up to date with progress on my Relevant Life Policy, followed up promptly following delays caused by my medical practice being slow in compiling reports, and responded instantly and clearly to any questions I had.
We received a wonderful service from mykeyman and will be using them again. The service and product knowledge from team is excellent. Everything was made easy to understand. The price was the best we found too.
Jody was very helpful in explaining the options and I thoroughly recommend his company
Key man insurance taxation rules have changed in 2024, affecting how businesses manage this important coverage. Here’s what you need to know about the latest updates.
Key man insurance is crucial for protecting your business from the unexpected loss of key personnel. Here are 5 reasons why every company should consider this essential cover.
Wondering how much cover your business needs? Our calculator makes it easy to find the right coverage for your key employees.
Aviva Relevant Life Insurance Review Get My Instant Quotes Start saving money on life insurance today When it comes to Relevant Life Insurance…
A Gift Inter Vivos policy typically lasts for 7 years, which aligns with HMRC’s Inheritance Tax rules on lifetime gifts.
It depends on how much you’re gifting. The amount of Gift Inter Vivos cover should match the value of the gift you’ve given, particularly if it’s above the Inheritance Tax threshold. Typically, this cover decreases over the seven years in line with how HMRC reduces the Inheritance Tax liability on gifts over time.
If the policy is placed in trust, it will ensure the benefits from the claim on the policy aren’t added to your estate, which would have otherwise increased the tax liability. Placing the policy in trust also means it won’t get caught up in probate.
Simply fill out our online form and we’ll help you find the best quotes within minutes. We’ll ask you how much cover you’re looking for and questions about your personal circumstances to help you find the right Gift Inter Vivos quote.
You may want to consider getting a Gift Inter Vivos quote if you’ve given a substantial financial gift and want to protect your beneficiaries from an unexpected Inheritance tax bill should you pass away within 7 years of giving the gift.
We work with UK insurance providers to find you the best Gift Inter Vivos quote for your unique circumstances. My Keyman Insurance was the first online provider of specialist business protection advice and we’re proud to have maintained a leading role in helping protect individuals and businesses through tailored insurance advice.
Premiums vary based on your age, health, smoking status, amount of cover, and policy duration. Since the cover typically reduces annually, the cost is generally lower than standard level term Life Insurance.
