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Charitable gifting in your Will: A guide to leaving an impactful legacy

Charitable gifting through your Will can be a profoundly meaningful way to leave a lasting legacy.

While it’s widely recognised for its potential tax benefits, especially in reducing Inheritance Tax (IHT), the process of incorporating charity into your Will and communicating your intentions to your loved ones is equally important.

Including a charitable donation in your Will can reduce the amount of IHT payable on your estate.

Currently, in the UK, estates valued over £325,000 are subject to IHT at 40 per cent.

However, if you leave at least 10 per cent of your net estate to charity, the IHT rate on the remaining estate reduces to 36 per cent.

This can be a significant saving, especially for larger estates, and a compelling reason to consider charitable bequests other than the moral value of philanthropy.

How to gift to charity in your Will

When drafting your Will, you can specify a fixed sum (known as a ‘pecuniary legacy’), a particular item, or a share of your residual estate to go to charity.

It’s crucial to use the correct legal name of the charity and consider including its registered charity number to avoid any confusion.

If you wish to support a specific cause within the charity, this should also be clearly stated in your Will.

Discussing your Will and intentions with your family and loved ones is vital.

This conversation ensures that your wishes are understood and respected, reducing the likelihood of disputes or misunderstandings after your passing.

It’s also an opportunity to share the reasons behind your charitable choices, potentially inspiring others to consider their own legacy gifting.

Circumstances change, and so might your charitable intentions so regularly review and, if necessary, updating your Will ensures that it always reflects your current wishes and circumstances.

This is particularly important if your chosen charity undergoes significant changes, such as merging with another organisation or changing its focus.

A qualified solicitor can help you rewrite or edit your Will at any point in life, so there is no need to wait for a major life event like a marriage or divorce to do so.

Including a charitable donation in your Will is not just a tax-efficient move – it’s a powerful statement of your values and a way to make a lasting impact.

With careful planning and open communication, you can ensure that your charitable legacy is honoured exactly as you intend.

For help with writing your Will, please contact one of our solicitors.