Leaving a part of your legacy for a charity in the Will is certainly not out of the ordinary. Many people choose to include a charity bequest in their Will. These legacies signify a massive amount of transformation for the charities in the UK. Needless to say, many smaller charities essentially depend on these gifts so that they can keep their doors open for years to come. Truth be told, gifts from Wills account for nearly one-quarter of all the finances that are bestowed to various charities every year. To be precise, it’s roughly around £2.24bn. Yes, you read that right – it’s BILLIONS from only 7% of people leaving in the UK!
Now imagine how much more funds can be raised if the percentage rose! So, it is no surprise that charities would put in their all to get people to leave a legacy in their Will. So, if you want to include a Charity Legacy in the Will, then here’s what you need to know.
Why Leave A Charity Legacy?
Yes, we know this is a complete no-brainer, but we thought we’ll add it anyway This is because some people are hilarious and perhaps a little bit spiteful, while others are more humane. So, to an extent that we can tell, there are 3 reasons for doing so.
- The first and foremost reason to leave a charity legacy is because a specific cause is close to your heart and you’d wish to help them continue their good work.
- The second reason is to help alleviate their Inheritance Tax.
- The third and final reason is to keep the funds away from their loved ones.
Of all these reasons, the 3rd one might seem to be a bit ruthless, but the reality is under the law of intestacy the property is distributed amongst their close relatives. When you leave your entire legacy for a charity, it not only becomes impossible for your loved ones to benefit from it (as you didn’t wanted them to), but also lets you rest assured that the funds are going for good cause.
But, often this ends up with angry relatives contesting the Will in the court – this really happens more than you’d think. So, to avoid such circumstances after you’re gone, firstly, it’s better to mention it in your Will (well, you could use a free Will kit template to draft one!) and secondly, leave a letter with comprehensive details regarding the decision and tell them why you did it.
How To Include Charity In The Will?
Similar to most of the things in your life, once you’ve made up your mind, it actually VERY SIMPLE! You just have to include it in your Will when you’re drafting one.
If you wish to steer clear of any future disputes, simply ensure you’re mentioning detailed information about the charity, which must include their registered number and address. If you’d like to leave a gift to a particular branch, then better check with them as it’s likely that they might not be in the position to accept one.
What Can You Leave For Charity?
A charity legacy is similar to other donations that you mention in the Will, meaning you can leave behind the following:
- Certain amount of funds or a specific percentage of your property – an economic legacy.
- Share of whatever is left once you’ve settled all the expenses and legacies – an enduring legacy.
- A particular asset or item – a definite legacy.
Some of you reading this might say it’s of no use to leave charity legacy, but let us tell you that you’re WRONG! No matter what, leaving charity legacy always turns out to be a ‘win-win’ situation.
This way, not only will you be rest assured that the funds will be donated for a good cause after your demise, but also be able to alleviate your inheritance tax responsibilities.
Do we mean PAYING LESS TAX? Well, HELL YEAH!
This is how it goes- whatever you leave for charity is free of tax. So, for instance, your property is on the brink of Inheritance Tax threshold, by donating the difference amount to charity you can surely do away with the liabilities, not to mention the savings you’ll make for your beneficiaries.
So, donate and start saving today!