A growing number of people are including gifts to charity in their Will, a major study has revealed.
The research, published by Remember a Charity, shows that not-for-profits are set to receive a “record” level of donations over the coming years.
According to the report, almost one in five (19 per cent) of charity supporters aged 40 and over have already written a gift to charity in their Will, up from 14 per cent in 2013.
One in ten supporters, meanwhile, intend to make a gift to charity in their Will or are preparing to do so.
There are many reasons why someone would want to leave a gift to a charity in their Will. Aside from supporting a good cause, any donation left to charity will be taken off the value of your estate before Inheritance Tax is calculated and in some cases it can reduce the Inheritance Tax rate on the remaining estate (from 40 to 36 per cent), providing 10 per cent or more of your estate is left to charity.
The study found, however, that just six in 10 (62 per cent) donors have written a Will. This falls to 46 per cent among those in their early 40s.
Should a donor die without leaving a Will, a charity would not automatically be entitled to anything, even if the deceased expressed intent to leave a gift to an organisation on their death.
The findings form part of Remember a Charity’s annual consumer benchmarking survey, which surveyed over 2,000 charity donors aged 40 and over to track their legacy giving attitudes and behaviour.
Commenting on the report, Rob Cope, director of Remember A Charity, said: “Leaving a gift in your Will is such a positive and empowering decision to make during end-of-life planning and the legal sector has been a major driver of this change.”
Rachel Blackburn, an Associate with Mander Hadley, who specialises in Wills, Probate & Older Client matters, said: “Ensuring that you have a valid and up to date Will is essential to avoid any issues further down the line and to give you peace of mind that your inheritance will be passed to your chosen beneficiaries. It can also be a very tax-efficient way of providing vital financial support to charities.”
For help and advice on matters relating to Wills, inheritance, and estate planning, please contact our expert team.
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