Do you know about Wills, inheritance tax planning and how this affects charity donations? Giving to charity is something which most people will become involved in at some point during their lifetime, whether that be through fundraising efforts, occasional donations or regular standing orders. However, did you know that you can also provide for your favourite charities on your death through your Will in Scotland? Have you thought about giving to charity in your will?

How can I provide for charities on death?

The simple answer is to make a Will! If you die without a Will (intestate), your estate will be distributed among your family according to the rules of intestate succession - depending on your circumstances, this could mean that your estate is distributed among siblings, cousins and more distant relatives.

Providing for a charity in your Will, doesn't mean that you can't also provide for family members. It is possible to include legacies of specific sums of money (or specific items) to your favoured charities, with the balance of your estate passing to family members.

It is also possible to leave your whole estate, or part of it, to your chosen charity or charities - this can be done by leaving a share of the residue of your estate (what is left after payment of debts, expenses and any legacies) to the charity.

Why should I include a charitable legacy in my Will?

Aside from the feel-good factor of knowing you are doing some good after your death, charitable legacies also have the advantage of being exempt from Inheritance Tax.

Each individual has an Inheritance Tax allowance (Nil Rate Band) of £325,000 - if your estate is worth more than this, the balance could be subject to Inheritance Tax at 40%. However, as charitable legacies are exempt from Inheritance Tax they can have the added advantage of reducing or even eliminating an Inheritance Tax bill for your estate!

Our firm supports Remember a Charity, an organisation which works to encourage more people to consider leaving a charitable legacy in their Will. We contributed to the organisation's supplement in the Scotsman, which aimed to raise awareness of the different ways you can provide for a charity on your death - click here for more details.

I want to provide for a charity on my death - what do I need to do?

At TC Young, we have a wealth of experience in advising clients on Wills. If are thinking about giving to charity in your will, get in touch.