We have all heard recently heard how Charities have been struggling financially during this current pandemic. Which is why it is important now more than ever to consider perhaps leaving them a legacy in your Will.
Maybe you have a close personal association or reason for wanting to provide for a particular Charity.
Whatever the reason it is worth considering the following:
Currently If you leave a gift or asset in your Will to a charity that is worth 10% or more of your total assets, then you can reduce any Inheritance Tax payable on your estate when you die from 40% to 36%.
Also, another important point to note is that you can leave as much as you like as a gift in your Will to a Charity and it won`t affect your nil rate band, (that is how much you can leave without having to pay IHT which currently stands at £325,000).
Finally, it is worth ensuring that any Charity you choose is registered and beware that if you intend leaving all of your estate and assets to a Charity and wish to leave out a family member then they may have a potential claim against your estate for reasonable financial provision.
Contact our office and our legal experts will provide you with any further information you may require.