Leaving a Legacy in your Will to a charity is simple, and can save you from paying Inheritance Tax. Our guide below explains how you can leave a Legacy to a charity, and how Age UK Hull could benefit from your gift.
- Have you got a Will - is it up to date?
- Did you know you can include a charity or several charity, which are important to you, in your Will?
- Do you know how much you have to distribute to everybody, should you no longer be here?
- Do you know how easy it is to establish or update your Will?
- And most importantly, do you know gifts to charities are wholly exempt from inheritance tax?
Everyone goes through changes in their life, such as retirement, home buying or loss of a parent or partner. Wills can play an important role in these changes. We cannot stress how important it is to establish a Will and to keep it up to date.
Through your Will you can plan your charitable giving and help one or more compassionate causes, while having relief from inheritance tax.
How many charities can you help?
The average charitable Will contains Legacies to three different charities - so it is achievable to invest in several causes that are important to you.
Research by charities shows that many donors do not know that they can include one or more charities in their Will and are favourably inclined to do so when told they can. People like to know they are leaving a Legacy – giving to charities can give you a 'feel good' factor.
On death, if the value of a person's net estate is more than a certain value, currently £300,000, then inheritance tax is payable. The nil rate band is prone to change, and changes at the beginning of a tax year, on 6 April. The rate of Inheritance Tax is presently 40% (this is subject to change) and accordingly people can end up paying substantial amounts in inheritance tax. Particularly in the light of the general rise in house prices, more and more people are finding that their net estates are potentially subject to this tax.
There are several steps that can be taken to minimise the tax payable, both during a person's lifetime and by making a provision in their Will. It is always advisable to seek advice if there is any possibility that the tax will be payable.
Any gift made to a charity is wholly exempt from Inheritance Tax. If a person wished to benefit Age UK Hull they could leave a Legacy to the charity in their Will, safe in the knowledge that such a gift would reduce, or even extinguish any inheritance tax that might be payable on their estate.
Such Legacies are always greatly appreciated by Age UK Hull, as they assist our charity in continuing to provide much needed services to the local older population.
Why give a Legacy to Age UK Hull?
Pledging a Legacy to our charity can help older people live longer and healthier and maintain independence. We aim to enhance the quality of later life, promoting good health and helping older people to enjoy social interaction.
Like all charities, we rely on fundraising to support our activities. There are many areas of fundraising, but in particular Legacies benefit our charity greatly.
A previous Legacy we received was a result of helping a particular older person and his family. We were able to put the Legacy funds towards community support for more older people, their families and carers. This meant that in 2002 an extra 559 older people in West and Central Hull were helped by us.
What to do next
If you are establishing or updating your Will, instruct your solicitor that you would like to pledge a legacy to Age UK Hull. Your solicitor may not ask if you have considered leaving a charitable bequest, as they may presume that clients already know what they want to put in their Wills - so you must instruct them at the time. That's all there is to it!
For more information please contact us at:
Age UK Hull
Healthy Living Centre
Telephone: 01482 324 644