Leaving a charitable gift in your Will is one of the best ways you can support a charity. This type of funding is often one of their main sources of income and has kept many charities afloat in recent years. In fact, by 2030, legacy income is expected to reach £5bn a year.
With many charities not receiving any government funding, donations of this sort are incredibly important.
In this post, we will outline some of the most frequently asked questions about leaving money for charity in your Will.
How can I leave a charitable gift in my Will?
There are two main ways to leave a charitable gift in your Will. These are to:
- Specify any charities you wish to benefit from your Will
- Let the executors of your Will decide
If you choose the former, it is best to include their registered charity number. This will help avoid confusion if another charity has a similar name or if the name of the charity changes. You could leave them a legacy e.g. a set amount of money, or a share of your residuary estate e.g. a percentage of the final pot.
If you choose the latter, it may be a good idea to leave instructions to help guide your trustees. However, do note that this may not be legally binding if it is not contained in the Will.
What can I give to charity in my Will?
Your gift to a charity does not need to be a sum of money. You may wish to leave a particular item, such as a piece of jewellery, or perhaps you wish to leave a portion of your property. Although, do note the charity is likely to need to sell the asset to be able to benefit from the funds.
Do I need to pay tax on my charitable gift?
Any gift you make to UK charities is free from inheritance tax (IHT) and it could mitigate your tax liability overall. When you leave at least 10% of your estate to charity, the inheritance tax liability of the rest of your estate falls from 40% to 36%.
If, however, you wish to leave a gift to a charity outside the UK, the situation may become more complicated. Get in touch for more information.
Can I specify what I would like the charity to do with my gift?
You can specify what you would like the charity to do with you gift, however it is always best to discuss your wishes verbally with the charity, before putting it in writing.
There have been cases of charities refusing a gift as they could not meet the requirements in the Will. Ensure both you and the charity have come to a sound agreement.
Is it possible for family members to dispute the gift left in my Will?
Under the Inheritance Act, family members may have grounds to dispute your charitable gift if it did not make sufficient financial provision for them.
They could also argue that at the time of writing the Will, you were under the influence, or lacked the mental capacity to make your own decisions. Learn more about if and when a will can be contested.
Get advice
If you are looking for advice on leaving a charitable gift in your Will, then give our specialist Wills & Probate team a ring on 0161 969 3131 or fill in our contact form and one of the team will be in touch.
Our trusted and experienced solicitors know that writing a Will is one of the most important decisions you will make, and will ensure your money goes where it is intended.