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1. There is no law which prevents your mother in law gifting yourhusband money today and not waiting until she dies. She can go ahead and do this. Provided your mother in law lives for seven years, the gift will be inheritance tax exempt totally. Even if she lives for less than seven years, tax relief will apply at a lower rate than it would if she waiting until she died. Additionally, be aware that provided her estate is less than £325,000 it will be tax exempt. However, it is a good idea to gift the money in advance of death as this will reduce any potential tax liability if your mother in law has an estate of over £325,000. So, go ahead and get her to make the gift. Don't be put off by some scare mongering which is incorrect.