FINANCIAL CONSIDERATIONS WHEN MAKING A WILL

Leaving a legacy to charity in your Will

As we have touched on earlier in this guide, when you die intestate i.e., without making a Will your assets are shared out according to a strict set of inheritance rules, which may not reflect your wishes, more information about these rules can be found at www.gov.uk/make-will It is worth noting that the law differs if you die intestate in Scotland (please see the Scottish edition of this guide for more information). You may decide to leave a legacy in your Will to charity.

Currently a quarter of Wills now leave a gift to charity in their Will. Charities rely on donations to  support their work and for most charities they wouldn’t be able to survive if it wasn’t for help from donations. Across the UK, people donate roughly £3.9bn a year in their wills. Even a small amount can help make a big difference to charities. After you have taken care of your loved ones and family members why  not consider leaving a gift in your Will to your favourite charity. Leaving a gift to charities can reduce the amount of Inheritance Tax you pay. 

Any gift left to a qualifying charity (an organisation that is recognised as a charity for tax purpose with HMRC) will be except from Inheritance Tax, also the rate of inheritance tax can be reduced from 40% to 36% if you leave at least at 10% of your ‘net estate’ to charity. You can even give money to charity whilst still alive as this won’t be counted as part of the ‘estate’ when you die. As your Will is a legally binding document, and the subject of charitable legacies can be complex, it’s sensible to seek professional help when making a legacy in your Will.