Gifts to Charity

Many people give to charities during their lifetime, but the extent of their generosity is limited by their means, and other spending priorities. On the basis of the truism that "we are all worth more dead than alive", a Will may offer the opportunity to be more generous.

It is also an appropriate time to show a final appreciation for any help and support that you, or a loved-one, may have received from a particular charity. It was there to help through the generosity of others; it will be available to those who follow through your benevolence.

When choosing a charity that you wish to benefit in your Will, it is important to ensure that you properly identify the exact charity that you have chosen. Otherwise your gift could bring about rancour, argument or even legal proceedings.

This is best done by quoting the Charity Registration number allocated to the individual organisation by the Charities Commission. You should also consider, and make clear, whether you intend the bequest for the national body, or a local or regional branch, where that kind of structure exists. Although charities would generally prefer that you didn't, you can specify the purposes for which your bequest is to be used. In addition it is prudent to provide for circumstances in which a charity may have closed, or merged with another, after the writing of your Will.

Where an estate is liable to Inheritance tax, there is an additional benefit in that charitable bequests are tax-exempt.

For example an estate of £350,000, which does not qualify for uplift in their Inheritance Tax “Nil Rate Band” of £312,000 (2008/2009) allowances from the previous partner, would pay Inheritance Tax of £15,200. The beneficiaries receiving the £296,800 balance.

If £312,000 were left to family etc and £38,000 given to charities, the tax bill would be "nil".
The Family would lose £22,800, the taxman would lose £15,200 and the charities would benefit by the full £38,000.

Many will find the charity of their choice preferable to the "compulsory charity" - the Exchequer.

Legacies – A nice way to say THANK YOU!

We would be only too pleased to help you make your Will. You can look at some charities that would be only to pleased to receive a gift in the form of a legacy by clicking on any of the following links.