The gift that keeps on giving: making an impact through a gift in your Will
Many charities rely on gifts in Wills. Without them, much of the vital work they undertake just wouldn’t be possible. It’s calculated that legacies to charities in Wills raise around £4bn* annually for the sector, but research also shows that about one in six UK adults* do not know that they can leave gifts of money or items to charities in their Wills.,
Why should you consider leaving a gift to charity in your Will, and how would you approach it? The team at leading regional law firm Muckle LLP explain more.
Where there’s a Will, there’s a way
According to research**, almost one-third of adults have not updated their Will in the past five years, while about one in three adults aged over 55 have not looked at their Wills for at least half a decade.
Keeping your Will updated is just good housekeeping. Time moves so quickly and family dynamics and finances are swept along, muddled up and reformed with the rush of time. More often than not, you too will have changed as a person since you last looked at your Will.
Why should you consider gifts to charities?
The most significant benefit is impact. Your gift could benefit others outside of your immediate family. What’s more, choosing a charity that aligns with your personal beliefs or business ethos is a great way to ensure that those areas that are so important to you in life can continue to thrive after you’ve gone.
The Country Trust, a charity that connects school children with working farms to discover how food is grown and produced, is working hard to build connections with the farming sector, an industry that naturally aligns with its own values. Sue Thompson, fundraising coordinator, says because of the nature of the work they do, many of their gifts come from donors in the farming sector: “We teach children about farming, not just about how food is produced but also about career opportunities so our ethos really aligns with protecting the future of the industry and that appeals to landowners and farmers when considering legacy gifts.”
Not all of us are natural philanthropists. Making a Will is a very personal thing and so thinking outside of our immediate family and sphere doesn’t necessarily come naturally to us. Sometimes a little prompt or explanation of how to gift to charity can open up a whole new view.
It’s less taxing
Donations to registered charities are not subject to inheritance tax, which means that leaving a gift to charity in your Will can lower the tax owed on the rest of your estate. This way, you can support a cause you care about while reducing the tax burden for your other beneficiaries. It’s a great way to benefit both your family and the charities you want to help.
In addition, if you leave 10% of your estate to charity then you could qualify for a reduced rate of inheritance tax.
Avoiding disputes
Leaving money to a charity is something that anyone with the resources is free to do. However, legacy disputes can and do happen, If you wish to leave a gift to a charity and you want to minimise the risk of a legacy failing, the best course of action is to formally have a Will – simply notifying family or friends of your wishes is unlikely to work in practice.
As you’d expect, all of the above can be quite tricky to coordinate, which is when a solicitor can support you. Whilst it is not a legal requirement to have your Will drawn up by a solicitor, it is highly advised that you do so!
To talk to a solicitor about a Will, or for any other estate planning matters, please contact our private client team on 01768 347 084.
To find out more about The Country Trust visit the website today.
*Legacy Foresight (2023)
*Cancer Research UK (2024)