Remember A Charity Week takes place from 7–13 September, providing an opportunity to think about the causes that matter to us and the difference we might be able to make in the future by leaving a legacy.
As a partner of Remember A Charity, we are pleased to support the campaign and encourage people to consider how leaving a gift in their Will could help a charity continue its work for generations to come.
For charities, legacy gifts can make a significant and lasting difference. For individuals, they can be a meaningful way to support a cause that has played an important part in their life or reflects their values.
Your legacy can help tackle loneliness
One charity that understands the impact of legacy giving is Marmalade Trust, a Bristol-based charity dedicated to raising awareness of loneliness and helping people feel connected and valued.
A gift in your Will could help Marmalade Trust continue this work in the years ahead – supporting its efforts to raise awareness of loneliness and create opportunities for people to connect and feel part of their communities.
Legacy gifts are particularly important to charities because they can provide valuable longer-term funding, helping organisations plan for the future and continue their work.
There are different ways you can leave a charitable gift. You might choose to leave a fixed sum, a particular asset, or a percentage of what remains of your estate after other gifts, debts and expenses have been taken into account.
Charitable giving and Inheritance Tax
Leaving a gift to charity can also form part of wider estate and Inheritance Tax planning.
Gifts to qualifying charities are generally exempt from Inheritance Tax. In addition, where at least 10% of the relevant part of your estate is left to charity, the rate of Inheritance Tax on the taxable estate can be reduced from 40% to 36%.
This means charitable giving can sometimes provide an opportunity to support a cause you care about while also reducing the Inheritance Tax rate that applies to the rest of your taxable estate.
However, the 10% calculation is not simply a case of giving away 10% of everything you own. The rules are more involved and depend on the circumstances of your estate and how your Will is structured.
This is why charitable giving can be worth considering as part of your wider estate planning, rather than as a last-minute decision.
A personal decision with a lasting impact
Ultimately, deciding to leave a charitable legacy is a very personal choice. Your first priority should be making sure your Will reflects your wishes and provides for the people who are important to you.
If you are considering leaving a gift to charity, it is sensible to look at the bigger picture. Your Will, property, investments, pensions and potential Inheritance Tax liability can all form part of the conversation.
At Harold Stephens, we help clients bring together their financial and estate planning, helping them understand their options and make informed decisions about the future.
Could a charitable legacy form part of your plans?
If you are considering leaving a charitable gift in your Will or would like to review your wider Inheritance Tax position, an initial conversation could help you understand your options.
Call 0117 3636 212 or email office@haroldstephens.co.uk to arrange a relaxed chat with our independent adviser.
To find out more about leaving a legacy to Marmalade Trust, contact Abi Wiltshire at abiwiltshire@marmaladetrust.org.
