A gift to charity in your Will can make a real difference, both to the causes you care about and to the lives of those in need. Charities often rely heavily on gifts from individuals, including legacies under Wills. By considering a charitable donation in your estate planning, you have the opportunity to leave a lasting impact and support the causes that are close to your heart.
Directing Your Estate to Charity:
One of the significant advantages of including a charitable gift in your Will is the flexibility it provides. You can direct how much of your estate is left to charity, whether it be a specific sum of money or a proportion of your assets. This allows you to tailor your donation to align with your philanthropic goals and the financial circumstances of your estate.
Tax Benefits of Charitable Gifts:
Apart from the satisfaction of supporting charitable organisations, there are also potential tax benefits associated with making a charitable donation in your Will. Gifts to charity are exempt from Inheritance Tax, which is charged at a rate of 40% once you have exceeded the available allowances and reliefs that your estate is entitled to.
Including a legacy in your Will to charity can help reduce the potential tax liability of your estate. By leaving a charitable gift, you can effectively reduce the taxable portion of your estate, potentially bringing down the overall Inheritance Tax rate. In certain circumstances, if a sufficient amount of your estate is given to charity, not only is the charitable gift tax-free, but it can also have the effect of reducing the tax rate on the rest of your taxable estate from 40% down to 36%.
Making an Impact:
Choosing to make a charitable donation in your Will allows you to leave a lasting legacy. Your gift can support causes that are important to you, such as medical research, education, environmental conservation, or social welfare. Many charitable organisations depend on these legacies to continue their vital work, and by including them in your estate planning, you contribute to their long-term sustainability.
Get in Touch:
If you’re considering making a charity donation in your Will and would like to explore this further, we’re here to help. Our Wills, Trusts, and Probates department can provide expert guidance and explain the benefits in further detail. Don’t hesitate to get in touch with us, and we’ll be more than happy to assist you in creating a Will that reflects your aspirations.
The contents of this post do not constitute legal advice and are provided for general information purposes only.
The contents of this post do not constitute legal advice and are provided for general information purposes only ■