Using Your Will to Leave Money to Charities.

Posted by on Jun 13, 2014 in Legal Services | Comments Off on Using Your Will to Leave Money to Charities.

Using Your Will to Leave Money to Charities.
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Our UK Parliament has just completed a cross-party report, following the Growing Giving inquiry, creating an age of giving, where they are asking for money to be left to charities in your last will and testament.

This is a matter of education and as it would appear that the majority of people do not leave money to charity in their will, although the UK is keen to give money to charity and help, support and volunteer to help charities.

The report shows that people leave just over £2 billion to charities, in their wills, each year. This represents around 5% of UK charity’s total income. Nevertheless, just 6% of people leave money to a charity, even after the changes in inheritance tax in recent years.

From HM Revenue and Customs website, it states;

If your estate is worth over £325,000 when you die Inheritance Tax may be due. From 6 April 2012, if you leave 10 per cent of your estate to charity the tax due may be paid at a reduced rate of 36 per cent instead of 40 per cent.

This may mean that by leaving money to charity from your last will and testament, you may leave more funds in your estate, after you have died.

The Charities Aid Foundation is supporting the inquiry, which will hopefully lead to more people leaving a legacy to a charity in their will. At present, it is estimated that 2/3 of adults have not yet written a will. These figures increase rapidly for individuals aged under 50.

There is a lack of awareness of being able to leave money to charities. When you are writing your will, this is the action that can benefit charities in the future.

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