It’s not just family members that can be beneficiaries in a Will. Tilly Bailey & Irvine’s Probate Solicitors in Hartlepool explain how ‘legacies’ allow donations to charities too.
Nobody wants to think about death. This therefore makes a very important decision difficult for many people – the process of making your final will.
The process of making a will is something that is often overlooked or put off until it is too late, but can have a profound impact when not in place. It is done to protect what you have, and make sure it is distributed in a safe and wholesome manner to those that you trust and care for.
It can also be used to support other causes. That could be a local business or, more commonly, a charity or cause that is close to your heart.
Apart from it being a positive gesture, including a ‘legacy’ charity donation can also reduce the financial burden that comes following death.
How does this affect tax?
If you are worried about the Inheritance Tax that might have to be paid when you die, leaving a gift to charity can reduce and even cancel out the Inheritance Tax liability. This is because a donation in your will doesn’t count towards the total taxable value – known as a ‘charitable legacy’.
You can also 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 charity.
Charity donations growing in popularity
In the UK we are well known for our generosity. Almost £10 billion was donated to charity last year alone, £2.8 billion of that courtesy of people leaving money to a cause in their Will. Despite this and over 35% of over-40s in the UK saying they would give a small amount of money in their Will, only 6.3% actually go through with that promise.
Talk through your intentions with your family to avoid heartache in the future. If a charity is concerned, this is the time to explain to them how proud you are of this donation, and explain to those close to you what they can do to help.
If you want to make a difference, don’t hesitate to contact Tilly Bailey & Irvine’s wills and probate solicitors in Teesside from Hartlepool, Stockton Wynyard or Barnard Castle by calling 01429 350062 or visit their website to make an online enquiry for free.