PET if recipient dies

[paulnotcluedup]

Could I please check what happens to a PET if the recipient dies (not the donor). Is this a failed PET and therefore a liability on the donor's estate? (Even if the donor lives for 7 years)?

Scenario - Donor has gifted more than £325,000 personal allowance in previous years. Following this, donor gifted £80,000 to a friend. The friend passed away a year later and the £80,000 was passed on in his will to his own grandchildren.

Is the PET cancelled? Is the PET failed? or does the 7 years continue to run?

Many thanks

[AGoodman]

The death of the recipient makes no difference to the donor or the donor's estate.