Charitable Donations in Wills – What are the Benefits?
Free Wills Scheme
During the last two weeks Clarke & Son have been supporting local charity, St Michael’s Hospice, with their “Will for Free” scheme which sees people making a donation to the hospice in lieu of paying us to have their Wills drafted. This scheme is always very successful for the local hospice, raising thousands of pounds.
As a nation, the British public give away nearly £10 billion each year to charity. A proportion of these charitable donations are made up by legacies left in a Will.
Leaving a charitable donation in a Will is not as common as you would think. Of course, when thinking about who should benefit from your estate on your death, it is friends and family that will take priority. However many charities rely on generous donations from a person’s estate after their death. This allows the charity to continue into the future. Charitable donations can be to large national charities or smaller, local charities. You, or a family member, may have perhaps benefited from them. This donation can be a way of saying thank you and allowing others to benefit from their continued work.
Leaving some of your estate to charity has a number of benefits.
Inheritance Tax Payments
Inheritance Tax payments received by HMRC increasing year-on-year. Many people are interested to find out how they can reduce the amount of Inheritance Tax payable on their death. When leaving money to charity in your Will such a legacy is not subject to Inheritance Tax. In addition, if you leave at least 10% of your net estate to charity then the rate of Inheritance Tax you pay is reduced from 40% to 36%.
If you have a Will and are considering making changes or if you want to find out more about Inheritance Tax planning and the benefits of leaving money to charity then please contact one of the Wills and Estate Planning Team who would be happy to assist.
Wills and Estate Planning Partner