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Why you should leave money to charity in your Will

For many people, leaving money to charity in their Will can be seen as saying thank you for the help they have received or someone that is close to them has received through their lives.

Charities do rely on gifts they are left when people die, however leaving money to charity can also benefit your estate, by way of an Inheritance Tax break.

What type of gift can you leave for charity?

Many people decide to leave a specific amount of money to charity. This is referred to be a monetary legacy, and it will be paid first, before your beneficiaries. For example, if £10,000 is left to charity, the remainder of the estate is divided among family members, after the £10,000 contribution is paid.

You can also leave a valuable object to a charity; however, this is done less often. You could, for example, leave an artwork, a home, or stock. This is referred to as a specific inheritance.

Finally, you have the option of leaving a residuary inheritance. After all, obligations have been paid and all financial and particular legacies have been made, this is the balance of the estate. You can either leave the entire residue or a portion of it.

If you plan to leave money to charity, you should think about bringing in the professionals to ensure that you fully comprehend the tax implications and that your estate is structured in the most effective manner possible, and luckily here at Legacy Guardians, we have a database of financial advisors, accountants, and solicitors who can help you with that.

Tax and charitable bequests

If you give 10% of your net estate to charity, your Inheritance Tax liability is reduced from 40% to 36% in most situations. Furthermore, gifts to charity are not subject to Inheritance Tax either.

How to leave money to a charity in your will?

It is critical to include the precise name of the organisation, as well as its registered charity number, in your Will.

A merger clause should also be included in your Will so that your gift goes to the charity even if it merges with another and takes on a new name.

You can even make your bequest in such a way that if your selected charity goes out of business, your contribution will go to another charity doing similar activities.

If you want the money you leave to be utilised for a certain purpose, you can specify this in your Will. It can be a wish or a legally enforceable obligation. You should be aware that if you make it a legally enforceable requirement for the charity to use your money for a certain purpose, they may not be able to receive the gift if they are unable to put it to that use, and unfortunately, the gift would be considered a failure.

What to consider

When drafting your Will, keep in mind that the value of your estate may fluctuate significantly over time. If you have to pay a large sum in care facility costs, for example, the remainder may be substantially less than you anticipated. It might be much more if you come into money.

It is generally advisable to review your Will on a regular basis, such as every five years or whenever substantial life events occur. If anybody mentioned in your Will as an executor, trustee, guardian, or beneficiary dies, you may need to adjust. The great news is, with Legacy Guardians, all updates are completely free of charge! (Bonus!)

Get in touch

Here at Legacy Guardians, we’re building a team of Specialist Property Administrators focused on organising Landlords’ important documents into a Digital Vault; with the ultimate aim of supporting their loved ones through Probate Administration after they pass away.

But more than that, once everything is uploaded we can help keep you organised for the dreaded HMRC tax investigation and hopefully look to give you some help with planning for retirement and inheritance tax.

Best of all, once live we’re hopefully going to offer free specialist landlord wills and £500,000 in free landlord probate administration.

Please contact us on or any of the details below to find out more about how we can help you to get that all-important financial peace of mind.

Legacy Planning can be complicated… time to stop researching and start doing!

Vikki Baptie

NRLA Accredited Landlord and IPW Professional Will Writer

I’m Vikki, the founder of Legacy Guardians. I hope this article was helpful, but I can probably guess that it’s about time that you stopped researching and got on with getting everything in order.

I know how it can be hard juggling everything with 15 properties, 3 kids, 1 dog, 1 Property Business and another couple of trading businesses things like succession and legacy planning usually go on the backburner. (thank goodness for my business & life partner Shaun!)

Take back your time, and gain that all important financial peace of mind by working through my Landlord Legacy Framework.