If you’re worried about Inheritance Tax, and many people are these days, it’s well worth looking at the significant benefits the Government offers to people who make charitable donations in their wills.
Leaving a part or your entire estate to charity can reduce, and in some cases, eliminate the Inheritance Tax liability. If you leave a charitable legacy in your will, it will be deducted from the taxable value of your estate. If you leave 10% of your net estate to a registered charity your tax liability on the rest of your estate will be reduced to 36% from 40%. If you are keen to support a charity, during your lifetime or after you die, it makes good sense to consult an expert sooner rather than later.
Of course, there’s nothing to stop you giving to charity now if you wish to. You can make a donation or give the charity anything that you own and it won’t be counted as part of your estate when you die, this could cut or even eliminate any Inheritance Tax that there would be on death. You can also benefit from some relief from certain taxes such as income tax when you donate to a charity when you’re still alive.
Many people say to me that the causes we support should be funded by Government or Local Authorities. Their understandable logic is that we pay enough taxes and rates, direct and indirect, to fund the services that we need. I agree with them, but as we all know, however much money the government takes from us there’s still not enough to go around. Knowing this gives people the opportunity to direct their legacies to a charity close to their hearts and often close to where they live, so that the people they leave behind can benefit from their generosity. Donating legacies in this way is now more popular than any other method; about £150 of every £1,000 received by charities in the UK comes from charitable legacies.
As we get older we become targets for a raft of companies and rascals. Some of the calls you receive may offer you advice about your Will and Inheritance Tax, but don’t be fooled, if you need advice about your will or inheritance tax call our office and we will let you have the contact details of local established experts who we know are reliable and trustworthy, and who do not overcharge.