We often get questions from clients regarding Legacy Giving (leaving money to charity in a Will).
In his first article, Wills & Tax Partner James Hammersley answers some of these questions…
Can I leave money to charity in my Will?
Yes, it is possible to leave a charitable donation in your Will. This is known as legacy or a charitable bequest.
Leaving money to charity is a lovely way of supporting a worthy cause, perhaps something that is close to your heart, and is something that many people choose to include in their Will.
Does leaving money to charity reduce inheritance tax?
Inheritance Tax is not be payable on any charitable donation to a registered UK charity.
For this reason, making a donation to charity can be a good way of reducing your overall Inheritance Tax liability (whilst helping out a charitable cause).
If you leave at least 10% of your estate to charity, you may qualify to pay a reduced rate of Inheritance Tax at 36% (this is reduced from the usual 40% rate).
How to leave money to charity in your Will
There are two ways that you can leave money to a charity in your Will. You can either:
- Name a specific charity that you wish to donate to, or
- Let the trustees of your Will decide which charity gets what
If you choose the first option, we advise that you include the charity’s registered number in your Will; to ensure that the donation is made to the right place.
You can find a charity’s registered number by using the Gov.uk charity register search here.
What can I leave to charity in my Will?
Click here to read the full article.