Wills and trusts
Leaving money to charity in your will
Leaving money to charity in your will has multiple benefits, but whatever the size of your gift, it’s best to seek legal advice first.
27 September 2021
What are the benefits of gifting a charity in your will?
Leaving a gift in your to charity is something many charities rely on to continue their important work. A recent joint from Remember A Charity, Legacy Foresight, the Institute of Legacy Management, and Smee & Ford showed that a staggering £3.4 billion is generated each year for UK charities through legacy funding.
Not only will donating to charity in your will benefit the cause you choose to support, but it could also reduce the amount of inheritance tax you pay, so you may want to consider leaving money to charity in your will as part of your wider .
How will donating to a charity affect inheritance tax?
The inheritance tax percentage is usually 40% of anything above the £325,000 threshold (also known as the Nil Rate Band).
But if you’re leaving a gift in your will to charity, the is lowered to 36% when at least 10% of the overall estate is being donated to charity. So, depending on the amount you wish to donate over the 10%, this may work in your favour.
There may be options for you to maximise the amount you donate to charity in your will, whilst simultaneously decreasing the amount of inheritance tax paid. This is where the expertise of your will writing solicitor comes in. They’ll be able to advise you on this as you go through the .
How do you leave money to a charity in your will?
If you’re selecting a cause in advance, it’s always a good idea to include the registered charity number, to avoid any confusion should the charity change its name. The gift can be:
- A cash sum
- A property or asset
- A share of any estate left over after tax, costs, and any other gifts. This is also known as your residuary estate.
You may also wish to specify exactly how you want your donation to be used by the charity. However, it’s always best to discuss this with the charity representatives beforehand to ensure that they can comply with your wishes and use the money in the way you intended. If they can’t, then they may refuse the gift, so it’s always best to check first. Your solicitor can help with this.
Do you need to inform a solicitor when leaving a charitable gift in your will?
A solicitor can simplify the process of leaving a legacy to charity in your will, making sure all your wishes are in a hassle-free and legally legitimate way, as well as helping you plan the most tax-efficient way to process your donation.
We have a range of will writing services available, dependant on your circumstances.