Charitable giving in your WIll

Leaving a legacy is about more than just passing on wealth; it’s also an opportunity to make a lasting difference. One of the most impactful ways to do this is through charitable giving in your Will. Including a charity in your Will allows you to continue supporting causes that matter to you, long after you’re gone. In the UK, charitable gifts in wills not only benefit worthy causes but can also provide tax advantages to your estate.

Types of Charitable Gifts in Wills:

There are several ways to include charitable gifts in your Will, depending on your financial situation and the impact you want to make:

1. Pecuniary Legacy: This is a specific sum of money that you leave to a charity. For example, you may choose to leave £10,000 to a cancer research organisation. It’s a straightforward option, but it’s worth remembering that the value of a pecuniary gift may decrease over time due to inflation, so it is a good idea to review your Will regularly.
2. Specific Legacy: You may wish to leave a specific item or asset to charity, such as property, shares, or valuable personal items like artwork or jewellery. Charities may sell these items to raise funds for their cause.
3. Residuary Legacy: A residuary legacy involves leaving a percentage of your estate to charity after all debts, taxes, and other bequests have been paid. This is often seen as a more flexible option because the value of the gift adjusts in line with the value of your estate at the time of your death. For example, you could leave 10% of your residuary estate to your chosen charity.

The Tax Benefits of Charitable Giving in Your Will

One of the key advantages of including charitable gifts in your Will is the potential to reduce your estate’s inheritance tax (IHT) liability. Broadly speaking, IHT is charged at a rate of 40% on the value of an estate that exceeds the nil-rate band (excluding any other exemptions that may be available such as the residence nil-rate band). The current nil-rate band is set at £325,000. Gifts to UK-registered charities are exempt from IHT, meaning they are deducted from your estate before the tax is calculated.

Importantly, if you leave 10% or more of your estate to charity, your estate could benefit from a reduced IHT rate of 36%. This can be a valuable strategy for reducing the overall tax liability on your estate while supporting the causes you care about.

Our Partnership with Battersea Dogs & Cats Home

Charitable giving through your Will is one of the most powerful ways to ensure that your values and passions live on. By supporting a charity, you can leave a legacy that benefits future generations while also providing tax advantages to your estate. Whether you choose to leave a fixed sum, a percentage of your estate, or a specific asset, your gift can have a lasting impact.

That is why our chosen charity for this year’s Wills Week, Running from November 4th until November 8th is Battersea Dogs & Cats Home, a charity dedicated to rescuing, rehabilitating, and rehoming dogs and cats in need, providing lifelong support for animals and advocating for animal welfare. During this period, if you make a donation of at least £150.00 we will prepare a simple will in partnership with Battersea Dogs & Cats Home to raise awareness and encourage charitable giving in Wills.

If you would like to draw up a new Will or amend your existing Will to include a gift to a charity that is important to you, Anthony Gold has a team of experienced solicitors who can guide you through the process, helping you create a Will that reflects your legacy and makes a difference for the causes you care about.