Gifts of an amount up to the nil rate band, £325,000, can be given with no immediate IHT liability. To be effective for IHT the gift must be ‘irrevocable’. The same seven-year period (as mentioned in Gifts to Family) applies to gifts into trust, the donor needs to survive for seven years to make the gift exempt. As with outright gifts, you can insure against death within the seven-year period by taking life assurance. The main difference is that an individual, as trustee of the plan, would retain control over the capital and therefore when any payments are made to the beneficiaries. Only the original gift is potentially liable to IHT during the seven-year period, any growth on the capital belongs to the trust and the trust beneficiaries and is not liable to IHT. Once gifted the donor does not have access to the original capital or any income it generates.