Leaving a charitable legacy in your Will does not only benefit your chosen charity, it can also have substantial inheritance tax benefits for your estate.
It is a common misconception that only significant sums of money are left to charity and even a small donation can make a difference – charities rely on these gifts to continue their good work.
The tax benefits of leaving a charitable legacy
The Government is keen to offer incentives to those leaving a charitable legacy in their Will. If you leave a charitable legacy in your Will, the gift will be exempt from inheritance tax as the amount will not count towards the total taxable value of your estate. Therefore even a small gift can make a tax saving.
It is also possible to cut the inheritance tax rate on the rest of your estate from 40% to 36% if you leave at least 10% of your ‘net estate’ to a charity. This can mean a smaller inheritance tax bill for your loved ones, as well as the benefit afforded to your favoured charitable cause.
Leaving a charitable legacy
It is important to seek expert advice when considering making a Will. At Blaser Mills Law we believe our clients should be fully informed throughout the Will-making process. We can work with you to ensure your Will provides for your family and friends and if you are considering a charitable donation, our lawyers can work out the most tax-efficient way for you to do so.
Remember a charity in your Will week is an event which runs from the 10th -16th September. With only 6% of the population including a charity in their Will, Remember a charity week is designed to encourage more people to take a moment to consider leaving a gift to charity when writing a Will.