A gift made during a person’s lifetime as opposed to a legacy passing on death. Inheritance tax is payable on gifts inter-vivos at a reducing rate over a seven-year period. A typical insurance solution is a decreasing term insurance that will provide funds on death during the seven-year period.

Gilt-edged securities are bonds and other loans issued by the UK government or UK local authorities, considered as safe investments. However, they are not risk free as the market price varies according to the financial climate, in particular the prevailing rate of interest.