When a gift is made between two people, other than between spouses, it would often be considered part of the donor's estate if they died within seven years of the gift being made. This could make the gift liable for Inheritance Tax (IHT), decreasing over the 7 year term.
Partnership's Gift Inter Vivos is a special type of term assurance which is designed to match the IHT liability on any gifts you make that HRMC could consider a Potentially Exempt Transfer. It is a seven year decreasing term assurance for which you pay a single premium at the outset.
How it works
The sum asured decreases to mirror the Government's IHT regulations and offsets the IHT liability on any gifts you have made, paying out a guaranteed lump-sum if you die during the policy term.