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05 Sep 2023

Wills & Probate

Have you considered leaving a gift to charity in your Will? Here’s what you should know

Having a Will is arguably one of the most important things you can do for yourself and your loved ones. Your Will must reflect the many areas of your life and their ever-changing nature in order to truly protect for the future. You can also, should you wish, leave a legacy gift to a chosen charity.

Gifts, or legacies, left to charities in Wills do not need to be large. Even a small amount or percentage of your estate left as a gift can make a huge difference, and you can leave as many legacies as you like in your Will.

You could leave different amounts to different people or organisations, and a legacy doesn’t have to be a cash gift, it could be property or some land.

What sort of legacy can you leave?

  • Residuary legacy: What is left of your estate after all other gifts have been handed out and all your debts have been paid off. These legacies keep up with inflation and are a good way of dividing the value of your estate between several people or causes that are important to you.
  • Pecuniary legacy: Fixed amount of money; owing to inflation, the value of a pecuniary legacy will decrease over time as the cost-of-living increases.
  • Specific legacy: A gift of a particular named item, for example, a piece of land, property, or artwork.
  • Reversionary legacy: A gift which someone can benefit from in their lifetime.
  • Contingent gifts: Legacies made based on another event happening first.

Gifting a legacy to charity is extremely common, with many people taking comfort that they are helping their chosen cause to continue with their good work, after they have gone.

Leaving a charitable legacy in your will also has financial benefits, as well as emotional. Any legacy gift to a charity is exempt from Inheritance Tax. Since April 2012, if an individual leaves at least 10% of their net estate to charity, they can benefit from a reduced rate of inheritance tax. This lower rate will be at 36% rather than the usual higher rate of 40%.

How can we help?

At Harding Evans, our trusted Wills & Probate team are on hand to advise you of your options and help you draft your will, to include any legacy that you may wish.

Contact us today to make an appointment to discuss your options.

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