in     by Danielle Sutcliffe 02-10-2017

Many of us make donations to our favourite charities over the course of our lifetimes. This could be a monthly subscription, some loose change placed into a charity tin, or perhaps through running a marathon and raising sponsorships. You may have a charity that is close to your heart for reasons personal to you. It could be that they helped a loved one during an illness, they could have offered support to you during a difficult time, or maybe it's a local charity that helps your local community. But have you ever thought about leaving a gift to them in your Will?

According to a study conducted last year, 35% of people said they would leave a charitable legacy in their Will. However, in reality only 7% of people do. Income from legacies total more than £2.24 billion, with cancer charities being the most popular category named in Wills. You might be surprised to learn that half of 16-24year olds interviewed said they would consider leaving a legacy, but only 17% of 65+ said they would.

What's in it for you?

So aside from helping your favourite charity to continue to provide its services, what is in it for you? Firstly, charitable gifts are exempt from Inheritance Tax (IHT) which means they are deducted from the overall value of your estate before IHT calculations are made. For those of you with assets over the £325,000 Nil Rate Band (excluding the Residence Nil Rate Band), IHT is payable at 40%. Secondly, if you were to leave at least 10% of your estate value to charity, you can reduce the IHT payable on your estate to 36%. 

There are two ways you can remember a charity in your Will. You can either leave a specific gift, e.g. a sum of money or an asset, or you can leave the residue (remainder) of your estate once you have provided for your loved ones.

For more information on how you can leave a legacy simply fill in your details here.