Inter Vivos Gift

There is a personal inheritance tax allowance, called the nil rate band, which is the amount the estate is exempt from the inheritance tax liability.

If the property exceeds the nil rate bands, an inheritance tax of up to 40 per cent can be taxed.

If a person gives an asset as a gift to a person other than the spouse, then there is a risk that if they die, the person who gets a freehold flat or a house in London real estate or other types of a fixed asset will have to pay a huge amount of tax on it,

As the taxman gets the duties from the receiver of the estate than from the one who gives it, it can be difficult for some gift takers to pay such a huge amount of money, especially for tangible assets like a home. 

The Gift Inter Vivos provide the option to pay a huge sum of money on death that meets the liability on the gift, and this can be taken by the authority or HMRC as an exempt transfer over the nil rate band ( for the inheritance tax). 

Some of the related features are - 
It is a type of life insurance that covers the IHT liability on gifts, and in the UK, companies can offer it for a premium of £7 a month or £84 a year. 

The insurance delivers no cash value at any time, and the cover will end if the client stops paying the premium. 

Once the plan has been offered, it cannot be changed, and the insurance company may not pay if the client dies intentionally in the first year of taking the policy. 

One can take a multi-cover plan to get a cover for one-fifth of any liability, where the premiums can reduce each year as they can be used for cumulative gifts. 

Even customized options for complicated gifting mechanisms have been determined where for cumulative gifts, the older gifts drop out of the calculation reducing the cost in the subsequent year. 

One can use the method of setting up a trust to gift at no additional charges. Inter Vivo trusts are contracted between two or more people and contain terms that benefit a third person.

The trustees are appointed by the gift giver who holds and administers the property.