Why give to charity in your will?

Now this question may be obvious to some people- after all, why wouldn’t you want to give to charity a last act of good will? This money also goes tax free and could also have inheritance tax advantages on your estate, so you know you’re making the most out of your money when giving to charity when making your will.

These gifts mean a lot to charities as they take up a third of their income.

You could benefit from a reduction in the rate of inheritance tax from 40% to 36% on your estate if you give 10% or more of your net estate to charity. Therefore, if you were already planning to leave 4% to charity, it is more worth increasing what you want to give to 10% as then more money would pass to charity, yet your beneficiaries would receive the same amount of inheritance. 

There are two ways in which you can leave money in your will to charity, you can either: specify a charity or charities or let the trustee’s of your will decide. The gift can be either a cash sum or a particular property or asset.

A family member may be able to contest a charitable gift in your will as the inheritance act states that your will must provide reasonably for any financial dependants you have. A family member can also claim that you were not of sound mind or under influence when making the gift. If this is successful, they could contest the gift or have your entire will declared invalid.

Did you know we already give a percentage of our profits to charity? Get in touch today and we’ll tell you everything you need to know about giving to a charity in your will. 

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