Live target? We might pass on that! (7)
I believe the answer is:
bequest
'we might pass on that' is the definition.
(item passed on after someone's death)
'live target?' is the wordplay.
'live' becomes 'be' (synonyms).
'target?' becomes 'quest' ().
'be'+'quest'='BEQUEST'
(Other definitions for bequest that I've seen before include "One left in will" , "Gift by will of personal property" , "Something gifted in a will" , "Gift left in will" , "Endowment, legacy" .)