Have you considered including a gift to your favourite charity in your will? As the largest single source of income to UK charities, legacies make a vital difference to good causes across the country.
A legacy allows you to make your mark on the world by providing for a good cause that is close to your heart. Free of inheritance tax, a donation made in your will can also help reduce the tax burden on your estate.
How does it work?
A charitable legacy could be a gift of money or of any other assets that you leave behind. While there are a number of options to consider, there are two main types of charitable legacies; pecuniary and residuary. Pecuniary legacies specify a sum of money or item of value to be donated, whilst a residuary legacy allows you to donate a percentage of the net value of your estate or the remaining sum after you have provided for family and friends.
What do you need to do?
To leave a legacy to charity, you simply need to include details of the donation in your will. This can be done by writing a will, by making an amendment or ‘codicil’ to an existing will or by setting up a Trust. Your solicitor or professional adviser will be able to tell you more.