Leaving Money to Charity when You Make a Will
When you make a Will, you can decide what happens to your money, property and possessions after you die. While most people focus on providing for their family and closest friends, many others also choose to leave money to charity.
This may be a charity that they volunteered for or actively supported throughout their life, and in many cases, a charity that supported them during their final days.
Leaving money to charity when you’re making a Will is known as leaving a “gift” in your Will. Gifts in Wills have become a crucial source of funding for charitable organisations and help to keep many financially sustainable. So when you are making a Will, you can leave a gift to your chosen charity or charities.
For initial legal advice get in touch with our Wills and Trusts Solicitors.
Tax Benefits of Giving to Charity
In addition to supporting a worthwhile cause, leaving money to charity in a Will can help you cut your Inheritance Tax liability. Leaving some or all of your Estate to charity can significantly reduce the amount of Inheritance Tax to be paid, and in some situations, remove the need to pay Inheritance Tax completely.
If you leave at least 10% of the value of your Estate to charity, you may qualify to pay a reduced rate of Inheritance Tax - just 36%, compared with the standard rate of 40%.
A charitable gift in your Will doesn’t count towards the total taxable value of your Estate. So although the amount you leave to friends and family might be smaller, the tax bill that would need to be paid is smaller.
What Can I Donate to a Charity in My Will?
You can donate either a particular item or a fixed amount of money. Or, you can leave a share of the remainder of your Estate after other costs have been paid out and other gifts have been distributed as you requested in your Will.
Leaving a legacy to charity when you make a Will takes only a little time, but can make a big difference, allowing support to be provided in your name after you’re gone.
For free legal advice call our Wills & Trusts Solicitors
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