Leaving a legacy is more important than ever
Without gifts in Wills, many charities in the UK would struggle to survive and with many anticipating a third of their total income to be lost as a result of Covid-19, charities have never needed our support more.
Last year people left more than £3 billion in their wills to good causes, making up about a third of a charity’s voluntary income*. With little or no government funding many charities rely heavily on donations and legacy payments under individuals’ wills as their main source of income.
Tax benefits of leaving a charitable gift
Aside from the fact that you are going to make a big difference to your chosen charity, when it comes to tax planning for your own estate, leaving a charitable legacy in your Will can also offer many benefits.
Charitable donations pass free of inheritance tax and so reduce 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%.
Make it personal
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.
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 on 0800 533 5349.
From our offices in Bath, Frome, Sherborne & Wells, 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.