Legal Insights with Wanstall Consulting – December 2021

Gifts to Charities
Charitable giving in Wills is extremely important, especially over the last two years with the significant impact of Covid on individuals and charities. When reviewing Wills and estate planning with clients, we regularly discuss charitable giving.

I thought now might be a good time to outline some potential Inheritance Tax (IHT) benefits with gifts to charities.

Free of IHT
Any gift to a UK charity is free of IHT, whether made in your lifetime, or by Will.

Types of gifts in Wills
Different types of gifts can be made. It could be a specific amount of money, or certain items, such as clothing, furniture or, as one client left, a collection of musical instruments. Or it could be a share, or percentage, of your overall estate.

Some people think that making gifts is only for the wealthy or may take away money from someone’s family or close friends. However, even a small gift to a charity can make a significant difference. Likewise, a gift to a charity, or charities, does not need to be instead of benefitting your family or friends, but can be in addition to this, or perhaps there may be no family or close friends.

If you leave 10% or more of your estate to charities, then if your estate is subject to IHT, the rate of IHT is reduced from 40% to 36%.

Benefitting charities in your Wills can both continue to provide for causes you may have supported in your lifetime, and also save IHT for your family and estate.

If you would like to discuss any of the above, or related matters, please contact me on iain@wanstallconsulting.co.uk or 01296 415700. You can also find more information on my website: www.wanstallconsulting.co.uk.

“Have an enjoyable, healthy and happy Christmas and New Year”!