Here at Blake Morgan we are supporting ‘Remember a Charity Week’ along with over 800 other solicitors and will writers around the UK. We consider leaving a gift to charity in your Will, how to do it and what the benefits are.
Remember a Charity week is run by Remember a Charity (a registered UK charity and not for profit organisation), set up in 2000 to encourage people to consider making a gift to charities in their will.
This special spot light week takes place between 11-17 September 2023 and is a fantastic opportunity to put a focus on the great work charities in the UK do for worthy causes, both nationally and locally. It is also a reminder of the importance of making a will to ensure your estate is dealt with in accordance with your wishes. Alternatively, it reminds those who already have a will in place, of the benefits of a timely review of their current will and to consider making charitable gifts in their will.
Many charities rely heavily on the legacies their supporters leave to them in their wills. For example, in 2021, Macmillan received 40% of their income this way. Remember a Charity Week is a positive reminder of this important way in which you can benefit causes close to your heart.
Whilst you may already support those charities that have supported you or a loved one during your lifetime, by remembering a charity in you will you can ensure the work they do can continue after your death and provide vital financial support for good causes. Additionally, as part of your estate planning, by including gifts to charities in your will, you can potentially reduce the amount and rate of inheritance tax payable on your estate.
The rate of inheritance tax in the UK is currently 40% on assets over any tax free allowances or reliefs for which your estate may qualify. Charities in the UK have charitable status for tax purposes and do not pay inheritance tax on gifts they receive from a person’s will. In addition, if you leave 10% of the net value of your estate to your favoured charities, the overall tax rate applicable to your whole estate is reduced to 36%. This allows the charities to receive even more funding from your estate.
You will be familiar with ‘Gift Aid’ when making donations during your lifetime and as outlined above, a similar exemption also applies for inheritance tax to gifts to charities in wills. So, making a gift to UK charities, however large or small, is a fantastic way to support causes important to you and to potentially pay less tax.
Whilst you may not know the value of your estate when you die, it is easy to either leave a set sum of money to a charity or charities, known as a pecuniary legacy, or a share of your residuary estate to a charity or charities, known as a residuary legacy.
How can Blake Morgan help?
Our specialist Succession & Tax team at Blake Morgan are here to help you make the right decision. We can guide you through the process of making a will and provide bespoke advice about how best to make charitable giving part of your will and estate planning. By leaving a gift in your will, you are making an impact on causes that matter to you.
Finally, by considering leaving a gift to charity in your Will, planning and reviewing your will at least every 5 years or following a change within your family (for example, marriage, divorce, birth or death of a loved one) you can ensure the terms of your will are up to date and benefit those close to you, be it family and friends or good causes.
Enjoy That? You Might Like These: