The festive season is often a time for reflection, gratitude, and giving. While many of us focus on selecting the perfect gifts for our loved ones, it’s also an ideal time to think about the broader impact we can have on our community and the causes close to our hearts. One meaningful way to give back is by including charitable donations in your will. Not only does this gesture leave a lasting legacy, but it can also offer potential financial benefits for your estate.
In this guide, we’ll explain the process of including charities in your will, the advantages of doing so, and how to ensure your wishes are legally sound and effectively executed.
Why Include Charitable Donations in Your Will?
Charitable giving through your will, often referred to as a “legacy gift,” allows you to support causes that are important to you even after your lifetime. Many people choose to do this for several reasons:
- Create a Lasting Legacy: A charitable gift ensures that your values and priorities continue to make an impact for years to come.
- Support a Cause Close to Your Heart: Whether it’s a local hospice, an environmental charity, or a national organisation, your gift can make a significant difference.
- Inheritance Tax Benefits: Gifts to registered charities are exempt from inheritance tax. If you leave at least 10% of your estate to charity, your inheritance tax rate may be reduced from 40% to 36% on the remaining taxable estate. This can be a strategic way to support good causes while also optimising the distribution of your estate.
Steps to Including Charitable Donations in Your Will
Adding a charitable donation to your will is a straightforward process, but it’s important to follow the correct legal procedures to ensure your wishes are carried out.
- Choose a Charity:
- Research the charities you wish to support. Ensure they are registered with the Charity Commission for England and Wales, as this is a requirement for tax exemption.
- Obtain their registered charity number and contact details.
- Decide the Type of Gift: There are several ways to leave a charitable gift in your will:
- Pecuniary Gift: A fixed sum of money.
- Specific Gift: A particular item, such as property, shares, or valuable belongings.
- Residuary Gift: A percentage of your estate after all debts, expenses, and other gifts have been distributed. This option is often popular as it adjusts with the size of your estate.
- Consult a Will Writer::
- Work with a qualified will writer to draft or update your will. They will ensure the wording is clear and legally binding.
- For example, if you’re leaving a pecuniary gift, your will might state: “I give £50,000 to [Charity Name], Registered Charity Number [Number], of [Address].”
- Communicate Your Wishes:
- Inform your executor and loved ones of your intentions. This ensures everyone is aware of your wishes and reduces the risk of disputes.
- Keep Your Will Updated:
- Life changes such as marriage, the birth of children, or changes in your financial situation may require you to revise your will. Regular reviews ensure your charitable gifts remain relevant and achievable.
Things to Consider
- Impact of Your Gift:
- Research how the charity plans to use your gift. Many charities have legacy teams who can provide details about their work and how your donation will be used.
- Tax Planning:
- Work with a financial adviser or will writer to understand how charitable giving can reduce the inheritance tax on your estate.
- Contingency Plans:
- Include a clause in your will for what should happen if the charity no longer exists at the time of your passing. For example, you could direct your executor to choose a similar charity.
The Role of Us
At The Will Centre, we specialise in helping individuals and families plan their estates effectively. Our experienced team can guide you through the process of including charitable donations in your will, ensuring your wishes are documented accurately and legally.
We understand that every estate is unique, and we tailor our advice to meet your specific needs. Whether you’re looking to support a local charity or a global organisation, we can help you create a will that reflects your values and protects your legacy.
Final Thoughts
Christmas is a time of generosity and goodwill. By including charitable donations in your will, you can extend the spirit of giving far beyond the festive season. Not only will your gift provide much-needed support to a cause you care about, but it will also leave a meaningful mark for future generations.
If you’re considering updating your will or starting the process for the first time, contact The Will Centre today. Let us help you make this Christmas one to remember—for your family, your community, and the causes that matter most to you.
Disclaimer
The information provided on this blog is for general informational purposes only and does not constitute legal advice. While we strive to ensure the accuracy and timeliness of the information, we make no representations or warranties of any kind, express or implied, about the completeness, accuracy, reliability, suitability, or availability with respect to the blog or the information, products, services, or related graphics contained on the blog for any purpose. Any reliance you place on such information is therefore strictly at your own risk.
We are not responsible for any errors or omissions, or for the results obtained from the use of this information. Under no circumstances shall we be liable for any loss or damage, including without limitation, indirect or consequential loss or damage, or any loss or damage whatsoever arising from loss of data or profits arising out of, or in connection with, the use of this blog.
This blog may contain links to other websites which are not under the control of the blog owner. We have no control over the nature, content, and availability of those sites. The inclusion of any links does not necessarily imply a recommendation or endorse the views expressed within them.
