How can you give to charity after you’re gone?
We all have a special cause that is close to our hearts - that could be anything from cancer research or ending child poverty to animal rescues and mental health foundations. Many of our clients ask us if it will be possible to give money to a charity in their Will. The answer is - yes, absolutely! These are called charitable gifts and any gifts to UK charities are free of inheritance tax.
It’s a wonderful way to leave your mark and pass on your legacy, plus it can also reduce the amount of inheritance tax paid by those in your Will so your loved ones can get the most out of their inheritance. For example, if you leave a minimum of 10% of your taxable estate to charity, the inheritance tax that your beneficiaries would have to pay decreases from 40% to 36%! If you plan to gift at least 4% of your estate to charity, boosting that gift to 10% will result in both the charity and those in your Will receiving more. It can get complicated, which is why it’s ALWAYS best to seek professional help.
So, how does it work? You can either specify a charity/charities that you would like to help (be sure to include their registered charity numbers to avoid any confusion down the line!) or you can let those in your Will decide. You can leave a cash sum, a specific asset e.g. a car, property, valuable object, or you can leave some (or the whole) or your estate i.e. everything you own.
Under The Inheritance Act, you do have to ensure that you have at least considered any financial dependents you have, in your Will, such as children. So if you do have financial dependents, make sure that they are provided for before you include a charity in your Will - if you don’t do this, charitable gifts may be contested which is something everyone wishes to avoid!
Are you thinking about leaving some of your estate to charity? Get in touch with Kindred Estate Planning today to see how we can help you.