Sandra Garvey, a Senior Associate in our Wills, Probate and Trusts team at Market Harborough explains how charitable gifts in wills work and answers the most common questions about leaving gifts to charity.
Why leave a gift to charity?
Not everyone is able to support their favourite charities during their lifetime, but leaving a gift in your Will allows you to make a significant difference without impacting on your current finances.
People often choose to leave a charitable gift because:
- It allows for your personal values and beliefs to continue to make a difference after you’ve gone
- It can support causes that shaped your life
- Even a small percentage of an estate can have a large impact
It can also reduce inheritance tax for the rest of the estate – see below.
What types of charitable gifts can you leave?
There are several ways to include a gift to charity in your Will. Your solicitor can help you choose what suits you best:
1. Pecuniary Legacy
A fixed sum of money, such as £500 or £5,000
2. Specific Legacy
A particular item such as property, shares, jewellery, artwork, or any asset of value
3. Residuary Legacy
A percentage of your estate after all other gifts, debts, and expenses have been paid.
This is often considered the most flexible option because it keeps your gift in line with the value of your estate, even if that changes over time.
How do I include a charity in my Will?
It’s straightforward to include a charity in your Will. You’ll need:
- The charity’s full name
- Its registered charity number
- The charity’s address
This information ensures your gift reaches the correct organisation and avoids confusion if charities have similar names.
Your solicitor can then insert the correct wording to reflect your wishes clearly.
Can I change my mind later?
Yes. You can amend your Will at any time if your circumstances or intentions change.
Regular reviews, especially after major life events, help ensure your Will continues to reflect your wishes.
What if the charity changes its name or ceases to exist?
This is a common concern.
A solicitor can include provisions to cover situations where:
- The charity merges
- The charity changes its name
- The charity no longer exists at the time of distribution
This ensures your gift is still used for a similar charitable purpose.
Can I specify how the charity uses my gift?
Yes, you may leave a gift for a specific purpose (for example, cancer research or guide dog training).
However, it’s often wise to keep wording flexible. If your chosen purpose no longer exists in future, overly strict instructions could make the gift difficult to use.
Your solicitor can help you strike the right balance.
Will the charity take any fees from my gift?
No. Charities do not charge to receive a legacy.
Normal estate administration costs such as probate fees or legal costs are paid out of the estate, not directly by the charity.
What if the value of my estate changes?
Fixed cash gifts (pecuniary legacies) can lose value over time due to inflation.
If you want your gift to retain its proportionate value, a residuary gift is often more suitable.
Are charitable gifts free from inheritance tax?
Yes, gifts to UK-registered charities are exempt from Inheritance Tax.
Additionally:
- If you leave at least 10% of your net estate to charity, the Inheritance Tax rate on the rest of your taxable estate may be reduced from 40% to 36%.
This can be a tax-efficient way to maximise what goes to both family and good causes.
Leaving a gift to charity in your Will is a thoughtful way to make a lasting impact and support the causes you care about most. Whether you choose to leave a small cash amount, a specific item, or a share of your estate, your generosity can change lives long into the future.
Whatever you decide, it’s essential to regularly review your Will to ensure it always reflects your current wishes.
If you would like help preparing or updating your Will, contact our Wills and Probate team on 03456 462 126 or email enquiries@rotherabray.co.uk
Disclaimer: This blog is for information only and does not constitute legal advice. If you need legal advice, please contact us on 03456 462 126 or email enquiries@rotherabray.co.uk to get tailored advice specific to your circumstances from our qualified lawyers.
