Gift Inter Vivos (GIV) is a life policy which aims to provide a lump sum to cover any Inheritance Tax (IHT) liability that could arise for the person that received a monetary gift from a donor.

The liability only arises if the donor passes away within 7 years of the gift being made. If the donor passes away within 7 years, the policy will match the reduction in IHT liability over these 7 years, often referred to as taper relief.

Advice should be sought to ensure that this type of policy is required for the gift being given, and falls out side of the nil rate band, your personal tax allowance.

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