We're very proud to be supporting the St Peter’s Hospice Make a Will fortnight, running from the 9th to the 22nd October. We can will draft or update a standard Will for you and instead of paying our usual fees, you can make a donation to St Peter’s Hospice.
We can also talk to you about leaving a gift to a charity (a ‘charitable gift’) in your will. This is a great way to support your favourite charity but it can also be beneficial from a tax perspective. This is particularly useful if you have a large estate and expect that inheritance tax will be paid when you die.
These are some of a number of benefits to leaving a charitable gift in your will:
- Any Gifts You Make To Charities Are Inheritance Tax Free
The first £325,000 of your estate is tax-free. This is called the ‘nil rate band’. Anything over the £325,000 is subject to inheritance tax at a rate of 40%.
But, there are some exemptions to inheritance tax and this includes anything left to a charity in your will. As a result, you can leave an amount of money or a share of your estate to charity and the 40% inheritance tax won’t be applied to this amount.
- Your Estate Will Get a Lower Rate of Inheritance Tax
If you leave 10% or more of your estate to a charity, the rate that your estate pays inheritance tax will be reduced to 36% from the usual rate of 40%. This is really helpful if you have a very large estate and could be subject to a big inheritance bill.
Charitable legacies and their impact on your estate can be complicated, so it’s important that a charitable gift is drafted correctly in your will. Your chosen charity’s trustee or treasurer must be able to accept the gift from your executors. It’s a good idea to get your will drafted so that you allow your executors to pay your legacy to a new charity or a charity with similar charitable values if your chosen charity has merged or ceases to exist.
If you would like to speak to one of our team about leaving a gift to a charity in your will or if you want to make a will in the St Peter’s Hospice Make a Will fortnight, please call 0117 926 4121 or make a Free Online Enquiry.