Discover the heart-warming benefits of giving to charity in your will. Save on taxes, leave a legacy, and ensure your values live on through giving.
Leaving a Gift a Charity in Your Will: A Compassionate and Wise Choice
When it comes to planning your estate, leaving a gift a charity in your will can be a compassionate and practical decision. Not only does it allow you to support causes you care about, but it also comes with several benefits, including inheritance tax advantages, personal fulfilment, and providing a safety net for your assets. In this blog, we'll explore the many reasons why making such a choice in the UK is both a kind-hearted and sensible move.
Inheritance Tax Benefits
Leaving a charitable gift in your will can significantly reduce the burden of
inheritance tax for your heirs. In the UK, estates exceeding £325,000 are subject to inheritance tax at a rate of 40%. However, by gifting a portion of your estate to a registered charity, you can lower the taxable value of your estate. The gift to charity is exempt from inheritance tax, and if you leave at least 10% of your estate to charity, it can even reduce the inheritance tax rate on the rest of your estate from 40% to 36%. This means that your loved ones will inherit more of your assets, and the charity of your choice will receive a substantial donation. It's a win-win situation that benefits both your beneficiaries and a worthy cause.
Personal Compassionate Benefits
The act of leaving a charitable gift in your will can bring a deep sense of personal fulfilment. Knowing that your legacy will continue to make a positive impact on the causes you're passionate about can provide immense satisfaction. It's an opportunity to leave a lasting mark on the world and to be remembered for your kindness and generosity.
Practical Reasons - A Fall Back Clause
Life can be unpredictable, and circumstances change. By designating a charity as a beneficiary in your will, you create a safety net for your assets. Notably, if your chosen heirs were to predecease you, the charity steps in as a reliable back-up beneficiary. This ensures that your assets support charitable causes in case the primary beneficiaries are no longer there to receive them, providing you with peace of mind and the assurance that your legacy will continue to make a positive impact, regardless of the unexpected twists of fate. This thoughtful provision in your will serves as a contingency plan, reinforcing the practicality of leaving a charitable gift and the enduring value of your contribution, providing you with peace of mind.
Alleviating Family Disputes
Leaving a charitable gift can also help prevent family disputes over inheritance. In cases where disagreements arise among heirs, the presence of a charitable beneficiary can act as a unifying factor. It demonstrates your commitment to giving back and may encourage harmony among your loved ones.
Honouring Your Values
Leaving a charitable gift in your will allows you to honour the values and principles that matter most to you. Whether it's supporting medical research, education, animal welfare, or any other cause, your bequest reflects your deeply-held beliefs and legacy.
Leaving a charitable gift in your will is a compassionate and intelligent choice. The inheritance tax benefits, personal fulfilment, and practical advantages make it a wise decision for anyone seeking to make a positive impact on the world while securing their legacy. By including a registered charity in your estate planning, you can leave a lasting, meaningful legacy that benefits not only your loved ones but also the causes you hold dear. It's an act of kindness that ensures your impact endures long into the future.