Does your Will include a Legacy to Charity? If you are thinking of doing this there are some facts you may want to consider.
- Around 80% of us support charities during our lifetime.
- 35% us want to leave the bulk of our estate to loved ones but like the idea of giving something back by way of donation on death to charities that we consider worthy of support.
- Surveys indicate less than 10% of the population actually leave a legacy
Making provision for Charities could not be easier:-
Steps To Take:
- Make a list of the charities to benefit, including registered charity numbers. Consider what you would like to happen if a charity changes its name or ceases to exist. Are the funds to be used in Scotland or elsewhere? Are there any specific purposes for which funds are to be used? It may or may not be helpful to the charity if you are too restrictive.
- See your solicitor re best way of proceeding - lifetime arrangements and/or provisions in your Will/Codicil. If the intended donation is substantial he may recommend your own Charitable Trust is set up to receive and administer the funds.
- Consider the tax implications and benefits - lifetime gifts to charities and legacies to them on death are free of inheritance tax (IHT), as are gifts made through nomination of pension benefits. Lifetime gifting can also reduce your Income Tax liability - a 25% tax rebate and donations can be carried back against a 2010/11 tax bill. Additional tax savings are scheduled from 2012/13 which could reduce the IHT liability from 40% to 36% if 10% of a deceased's estate passes to charity - specific details of how this will work still awaited.
- Legacies to charities can be for lump sums or for a share of residue - tax free legacies usually ensure funds reach the charities more quickly and leave the executors free to deal with the administration of the rest of your estate.
- Keep the arrangements under review
We are a Remember A Charity Campaign Supporter - check out their website for more information, alternatively contact our charities team.
