The people of UK are great charity supporters. Around 7 out of 10 people in the UK support charities, yet less than 1 in 20 remember one in their Will.
You don’t have to make a tricky choice between family or charity. It’s easy to consider both. You can state either a fixed amount, or a given percentage of your estate to go to your selected charity or charities. You can specify the amount of your estate to go to family and friends and leave any residue to the charity you wish to support. It’s up to you to decide the balance.
If you do choose to leave money to a charity you’ll need to let your LSUK consultant know the exact charity’s name, address and government registered charity number. Be aware that a number of charities have similar names so it pays to be accurate otherwise your choice of charity may miss out.
Taxation is an important point in both charity planning and in one’s own estate planning. All charitable donations are exempt from tax, which means that any money left to charities in a Will is exempt from inheritance tax. So, apart from knowing that the money you’ve left behind is being put to good use, it can, in fact, make financial common sense.
Charities are not liable to pay tax on money left to them in wills.
If you leave your affairs in order, your chosen charity should receive your legacy within 6 months. If your financial or tax situation is more complex, it could take longer.
You can let your chosen charity know of your intentions or you can keep your decision a private matter if you prefer. If you let them know then they can plan their future easier.
Filed under: Wills
Leave a Reply