Why Consider Leaving Money to Charity?
Leaving money to charity in your will is a generous way to support causes close to your heart. It allows you to make a lasting impact, even after you are gone. Additionally, charitable donations in your will can offer tax benefits for your estate, reducing inheritance tax liability. Learn more about inheritance tax and charitable giving on the UK Government website.
Steps to Include Charity in Your Will
1. Choose the Charity
Select a charity or multiple charities that align with your values. Research their mission and financial transparency to ensure your contribution will be effectively utilised. Use resources like the Charity Commission for England and Wales to verify the legitimacy of your chosen charity.
2. Decide on the Type of Gift
You can leave:
- A fixed sum of money (pecuniary gift): Specify an exact amount.
- A share of your estate (residuary gift): Allocate a percentage of your remaining estate after other gifts and expenses.
- Specific items: Donate valuable possessions, such as property, art, or jewellery.
3. Consult a Solicitor
Engage a qualified solicitor to draft or update your will. They will ensure your wishes are legally binding and correctly stated. Find a local solicitor using the Law Society’s search tool.
4. Include Precise Details
Identify the charity in your will. Include their registered name, address, and charity number to avoid confusion.
Tax Benefits of Leaving Money to Charity
Donations to UK-registered charities are exempt from inheritance tax. If you leave at least 10% of your estate to charity, your inheritance tax rate may reduce from 40% to 36%. This can benefit both the charity and your beneficiaries. For detailed guidance, visit the HMRC page on tax reliefs for charitable donations.
Writing a Charity Clause in Your Will
A typical clause might read:
“I give [amount/percentage/item] to [charity name], registered charity number [number], of [address], for its general charitable purposes.”
Your solicitor will help tailor this clause to your specific wishes.
Alternatives to Leaving Money
If you prefer, consider:
- Setting up a charitable trust: Create a long-term fund to support the cause. Learn more about charitable trusts on the Trusts and Trustees Act page.
- Donating assets: Leave stocks, shares, or property. The Charity Commission offers advice on gifting assets.
- Naming a charity as a life insurance beneficiary: Designate the charity to receive proceeds from your policy.
Informing the Charity
It’s helpful to inform the charity of your intentions. This allows them to plan for future contributions and express their gratitude. Some charities, like Cancer Research UK, provide resources and support for legacy donors.
Review Your Will Regularly
Life changes, such as marriage or the birth of children, can impact your estate plans. Review your will periodically to ensure it reflects your current wishes. For tips, visit Citizens Advice.
Final Thoughts
Including a charity in your will is a meaningful way to leave a legacy. By following these steps, you can ensure your contribution makes a difference while also benefiting your loved ones. Seek professional advice to ensure your generosity is honoured exactly as you intend.
