It has been reported that more than 1 in 5 Wills prepared by UK legal advisers (22%) now included a donation to charity.
Leaving a bequest to Charity has the benefit of reducing any Inheritance Tax liability on your death as gifts to charities are exempt for Inheritance Tax purposes. This can be a useful tool when Inheritance Tax planning and the report showed that the large majority of advisers (86%) proactively raise the topic of charitable bequests with their Will-writing clients, making them aware of the option to donate.
Gifts in Wills are the largest single source of voluntary income for charities in the UK, raising £3.4 billion for good causes annually and funding vital charitable services. Generous tax reliefs make gifts in Wills one of the most efficient ways of donating. In the UK, charitable bequests are exempt from the 40% Inheritance Tax and, when clients donate 10% or more of the value of their estate, the IHT rate on the remaining inheritance reduces to 36%.
How can Tozers help?
If you need any advice on preparing a Will or Inheritance Tax planning, please contact our specialist wealth management team, who will be happy to help.