Charitable legacies - benefits of leaving a gift in your will
16 October 2019
At Willans, we recognise that there is a wide range of local and national charities that our clients support through their lifetimes, whether this is through regular donations or through volunteer work.
We often see the continuation of this support after an individual’s death, with many now choosing to leave a monetary legacy to their chosen charities under the terms of their will.
Legacies left to a registered UK charity in your will are much appreciated by charities. They pass free of inheritance tax, having the benefit of the full legacy amount passing to that chosen charity and maximising the impact of your support.
In fact, as government funding in this respect is often unavailable or extremely limited, many charities rely heavily on donations and legacy payments under individuals’ wills as their main source of income.
Many individuals choose to nominate a specific purpose for the legacy, or a wish of how the monies should be used. Although stipulating a use for the legacy is possible, care should be taken when drafting such a condition. It is important to ensure that this is not too restrictive on the charity, but that the funds will still be used in accordance with your wishes.
Our wills, trusts and probate team have vast experience in drafting charitable legacies. We work closely with many local and national charities regarding the wording of legacies, ensuring that your legacy supports the work of that charity in the areas you most wish to benefit.
When it comes to tax planning for your own estate, leaving a charitable legacy under your will can also offer many benefits. It reduces the value of your estate chargeable to inheritance tax, and (if the necessary criteria are met) can also reduce the rate of any inheritance tax payable on assets passing to non-exempt beneficiaries (such as friends and families) from 40% to 36%.
If you haven’t yet made a will or would like to review your will with our specialist team, or simply wish to discuss the effect of including charitable legacies within your will, please contact a member of our specialist wills, trusts & probate team.
What can be said about 2020? Terms such as pandemic, lockdown, social distancing and furlough became commonplace. We’ve all had to drastically change the way we live and work this…
Changes to the Wills Act are set to allow video witnessing of wills in some circumstances. But while bringing the law up-to-date with today’s lifestyle is no bad thing, hastily-made…
If you own property in the UK but do not live in the UK, you should make sure that you comply with non-resident capital gains tax (NRCGT) rules, including the…
We use cookies on our website to give you the most relevant experience by remembering your preferences and repeat visits. By clicking “Accept”, you consent to the use of ALL cookies.
This website uses cookies to improve your experience while you navigate through our website. Out of these cookies, the cookies that are categorised as necessary are stored on your browser as they are essential for the working of basic functionalities of the website. We also use third-party cookies that help us analyse and understand how you use our website. These cookies will be stored in your browser only with your consent. You also have the option to opt-out of these cookies but it may affect your browsing experience on our website. You can find our cookie policy here.
Necessary cookies are absolutely essential for our website to function and enable core functionality such as security and accessibility. These cookies do not store any personal information. You can block these cookies by changing your browser settings, but this may affect how the website functions.
We use performance cookies such as Google Analytics to help us count the number of visitors and to see how visitors move around our website when they are using it. This helps us to improve the way our website works, for example, by ensuring that users are finding what they are looking for easily. The cookies collect information in a way that does not directly identify anyone. For more information on how these cookies work, please see our cookie policy.