How do I leave a gift to charity in my will?

Leaving money to charity in your will, also known as a charitable bequest, is a valuable way for you to support the causes that are important to you after you have passed away. Not only does it allow you to make a lasting impact on the causes you care about, but it also comes with tax benefits. Here’s what you need to know about leaving money to a charity in your will.

Choosing a charity

When deciding which charity or charities to support, it’s important to choose a legitimate one. In the UK, charities are registered with the Charity Commission, and you can easily check their details and registration number on the commission’s website. This will ensure that your gift goes to a reputable organisation that will use the funds for the purpose you intended.

When drafting your will, make sure to include the charity’s legal name and registration number. This will ensure that the gift goes to the correct organisation.

Once you’ve included a charitable bequest in your will, it’s a good idea to notify the charity. This gives them the opportunity to acknowledge your gift and keep you informed and up-to-date on their work. It also means they can plan for your gift and make the most of your donation.

Tax benefits of a charitable bequests

One of the main benefits of leaving money to charity in your will in the UK is that charitable bequests are tax-free. This means that any money left to charity in your will is free from inheritance tax. In addition, if your estate is due to be inheritance tax liable, if 10% or more of your estate is left to charity, this can reduce your inheritance tax rate. This can provide a significant tax benefit to your estate, which can be passed on to your loved ones.

It also means that charities receive the full amount of your gift, as intended. A solicitor will be able to advise you on the potential tax benefits that can be passed on to your beneficiaries.

How to formalise a charitable gift

To include a charitable bequest in your will, it’s important to consult with a solicitor or qualified adviser who specialises in estate planning. They can guide you through the process and ensure that your bequest is legally binding. You can decide on the type of bequest you want to make, such as a specific amount, a specific asset, a percentage of your estate, or the residue of your estate after other bequests have been fulfilled.

When you review and update your will and make any changes, make sure that your bequest to charity is still included and accurate, such as the status of the charity you intend to donate to.

Gifting money to charity

Leaving money to charity in your will in the UK is a simple and meaningful way to support the causes that are important to you after you die, and can help your beneficiaries.

McSherry Halliday has a team of experienced solicitors and qualified advisers who can advise you on estate planning, looking after your beneficiaries and ensuring that your gift goes to the right place and is used in the way you intended.