Brits leave record amount to Charities in their Wills
It has been revealed this week that the British public left £2.85Billion in their Wills to charities in the last year alone! The most popular charities that gifts were left to were Cancer Research UK, RNLI and RSPCA.
With this week being ‘Remember a Charity in your Will Week’ we are going to look into the reasons why us brits have been so generous through our Wills and the benefits the charities have reaped through our generosity.
Rob Cope, Director of consortium Remember A Charity explained that these legacies fund six in 10 lifeboat launches and two in three guide dogs. Therefore the legacies that we choose to leave through our Wills can help to provide vital services that we often take for granted and benefit many people within our communities.
Gifting to charities within your Will can also bring other benefits to you personally especially when it comes to inheritance tax. We all have an inheritance tax allowance, which is an amount of money we can leave without having to pay the tax. This tax year 2018/19 this is currently set at £325,000. Should you be in a position where you have more than this amount, a gift to charity can help to reduce any inheritance tax bill that would otherwise be charged at a whopping 40% on anything over your tax free amount. To help to reduce the tax a gift of 10% or more of your ‘net estate’ to charity is required to qualify for this reduction. By your helping your favourite cause and gifting more than 10% of your net estate you are then rewarded by a reduction in your tax rate from 40% to 36%. On estates which are quite some way over the tax free allowance this can save you thousands of pounds and potentially save lives depending on who your nominated charities are.
Therefore when you consider making a will in the future remember a charity when doing so. Leaving gifts in your will is quite easy and a straightforward process and there are a number of ways in which you can do this.
If you would like to find out more about how you can benefit your chosen charity through your Will or how to plan for Inheritance Tax and would like our help to do so please call one of our offices to make an appointment and one of our team will be happy to help