Gift Inter Vivos

If you have children, you may have thought about giving them  some money during your lifetime to help follow their dreams or live a more comfortable life. However, there may be tax implications for gifting sums of money.

Tax Implications of Gifting Money

Gifts of money may only be inheritance tax ( IHT ) free if you, the donor, survive more than seven years after making the gift. If you die within those seven years, the money may be liable to IHT depending on your circumstances.

What should you do if you’d like to gift money to your children, but want to make sure they’re covered should you die within those seven years? Your children could be liable for any IHT that becomes due.

Protecting Your Gifts

One way to make sure that the potential IT liability is covered is to take out a gift inter vivos cover. This cover pays out a sum of money to settle any IHT that might arise if you don’t survive seven years after making the gift.

There are different ways that gift inter vivos cover can be set up. You can take out cover and place this under Trust for the benefit of your children or your adult children can take out cover on your life. The premiums are ser at the start and will not change during the term of the  policy.


One of the keys to successful protection planning is to regularly review all your protection.

At AIC Financial we offer regular reviews to ensure your current  protection arrangements are suitable to your needs and are competitive in cover and cost. We annually check your cover to ensure that your needs have not changed along with. We could also save you money! Please contact us for your free initial, no obligation Protection review using the link below.