Most gifts you make during your lifetime are not liable to IHT so long as you survive the following seven years. These are called potentially exempt transfers (PETs). Once you have survived for seven years after making the gift, it becomes permanently exempt. Gifts into certain kinds of trust can qualify as PETs.
Making lifetime gifts can be an effective way to avoid IHT. You may be able to take out insurance to cover IHT on an unexpected death within seven years of a major gift.Last Updated
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03: Potentially exempt transfers
The FSA does not regulate taxation and trust advice. Tax rules are subject to change.
