Leaving a gift to charity
Key Considerations for Charitable Legacies
Leaving a gift to charity in your will is a tax-efficient way to support causes you care about after taking care of loved ones. You can donate a specific sum (pecuniary), a percentage of your remaining estate (residuary), or specific assets like property. Including the charity’s full name, address, and registered number is crucial for identity.
Residuary Gift: A percentage of your remaining estate after debts and other gifts are paid, which stays relevant with inflation.
Pecuniary Gift: A fixed sum of money.
Specific Gift: A particular item, such as property, shares or valuables.
Reversionary Gift: A gift that first benefits a loved one, then passes to the charity later.
Tax Benefits: Gifts to registered charities are typically exempt from Inheritance Tax. If you leave at least 10% of your net estate to charity, the tax rate on the remainder of your estate may be reduced.
Ensuring Validity: Use a solicitor or professional will-writer to ensure the will is correctly signed and witnessed.
Identifying Charities: Ensure you have the correct, current name and registered charity number to avoid confusion.
Charity Notification: While not required, notifying the charity allows them to thank you and understand your wishes for the gift.