Why you should consider leaving money to charity in your will

Why should you leave a gift to charity in your will? Remember A Charity explains how to leave money to charity in your will and how it could make you eligible for a reduction in inheritance tax.

Why should you leave a gift to charity in your will?

Planning a will gives you the chance to support your loved ones financially after you die. But it isn’t just your family who can benefit - it’s also possible to leave money behind for a charitable organisation.

But why should you consider donating to a charity in your will? Here’s some of the best reasons and benefits:

1. Kindness

The most obvious reason for leaving a gift to charity is that you may feel that you want to give something back. Once your loved ones’ needs have been considered and you know you’ve left enough money to comfortably support those nearest to you, there’s no harm in gifting that little bit extra to a cause who could really do with some help. Your parting gift will be additional support for a charity that might desperately need it.

2. Inheritance tax

Donating to a charity in your will could make you eligible for a reduction in inheritance tax owed. If you leave 10 per cent or more of your estate (money, property and possessions) to charity in your will then the overall amount of inheritance tax you have to pay will reduce from 40 per cent to 36 per cent.

Even if you are only donating as a means of tax relief, try to ensure it’s to a cause you care about. Take some time and do a bit of research if there are none which instantly jump out at you. To make sure your estate is eligible for the reduced inheritance tax rate, the best thing to do is to speak to a professional.

You can find out more about tax relief when you donate to a charity on GOV.UK.

3. Personal connection

Currently, 6 per cent of people in the UK leave money behind to a charity when they die. Most of the time, this donation is left because the deceased has a close personal connection with the chosen charity. Whether it’s a cause which has helped you, a loved one or even just something you care about on a wider scale, leaving a donation in your will is a brilliant way to say thank you for the hard work they’ve done.

Be sure to leave a personal message too, giving your thanks for the efforts of the organisation who are benefitting from your generosity.

How do you leave money to charity in your will?

If you want to leave money to charity in your will, make sure you include the following details:

the charity’s name
the charity’s address
the registered charity number

It’s very important to make sure the charity number is correct to avoid any confusion, as lots of charities have similar names. If you're including more than one charity, include details for each one. You can find all these details on the Charity Commission website.

Can you specify how you want a charity to use your money?

If there’s an area of a charity’s work that’s particularly close to your heart, you can request that your money is used in a certain way. It’s worth talking to the individual charity before you do this, however, as it might not always be something that’s possible.

About the author

Remember A Charity is a cross-charity campaign raising awareness of the importance of gifts in wills to good causes across the UK.

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Should I write a new will or make a codicil?

How to pay inheritance tax (IHT)

Find out more

Search the register of charities (GOV.UK)

Tax relief when you donate to a charity (GOV.UK)

Making a Will - your complete guide (Remember A Charity)

Image: Getty Images

Publication date: 9 December 2020