If you are a keen charity supporter, leaving part or all of your estate to charity can reduce your Inheritance Tax (‘IHT’) liability on your death.
The usual rate of IHT is 40% however if you leave at least 10% of your net estate to a charity (or a number of them), your estate will benefit from a reduced rate of IHT at 36%. Inheritance Tax is paid from the money in your estate by your Executors.
The gift to charity can be detailed in your Will as a ‘specific gift’ which is a set amount of money. Alternatively, you may wish to leave them part of your ‘residuary estate’ which is anything left over once your liabilities and specific gifts have been paid.
Interestingly, many charities are notified that they are mentioned in a person’s Will after their death and a Grant of Probate has been obtained. Charities are notified through the use of organisations who look through Wills once they become a public document. Read on here, to find out when a Will becomes a public document: https://www.foskettmarr.co.uk/index.php/2018/01/will-become-public-document/.
If you wish to discuss making a Will and gifting to charity, please contact Ann Coutts on 020 8502 3991 for more information.
https://www.foskettmarr.co.uk/index.php/our-team/wills-trusts-probate-essex/
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