IHT Insurance / Gift Inter Vivos

Inheritance Tax (IHT) Liability Insurance AKA Gift Inter Vivos

With the rise in house prices over the last 10 years, Inheritance Tax is a threat to more people than ever before. A simple and effective way to combat any Inheritance Tax liability you may have is to take out a Gift Inter Vivos insurance policy, which will match any liabilities you may have.

The threshold for paying Inheritance tax is £325,000 (£650,000 for couples), and is payable at a hefty rate of 40%. The impact of Inheritance Tax can be significantly reduced by taking out a Gift Inter Vivos assurance policy. A Gift Inter Vivos assurance plan enables you (the donor) to reduce any Inheritance Tax liability by making gifts to family members or loved ones before death. These gifts will remain tax exempt as long as you (the donor) live longer than seven years from when the gift was given.

How it works

• A Gift Inter Vivos policy will provide a cash lump sum to cover any potential Inheritance liability if the donor of a gift dies within seven years of making a gift.
• The premiums that are paid on the policy are fixed through out the term of the policy, which is seven years
• The cash lump sum that is payable on death goes down over the term of the plan as follows:

The premiums that you will need to pay over the term of seven years will be dependent on a number of factors such as:

• The amount of cover you choose
• Your age
• Your gender
• Your occupation
• Any past times you may have
• If you are a smoker
• Your medical history

Here at Contact Insurance we aim to provide you with the best policy to suit you needs. That is why we search the entire market and use well known names such as Legal & General, Scottish Provident, Standard Life, Liverpool Victoria, Prudential and Aviva (formally known as Norwich Union).

If you would like to know more about Gift Inter Vivos, call 0800 328 5773 and one of our Advisers will be happy to help you with any queries you may have.