Where you make a gift to an individual, say a son or a daughter, it remains part of your estate for inheritance tax purposes for seven years. But if they work for the family company you can dodge the seven year wait. How does it work?
A pension premium for your children paid by a company you own does not count as a transfer of value for IHT purposes even though it reduces the worth of your estate. The seven-year rule therefore does not come into play. If your children are not on the payroll, making them directors will be enough to make the plan work.
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