LEAVING A GIFT IN YOUR WILL TO THE ESU With your kindness the ESU will be able to continue its work with school children, university students, teachers and young professionals through the persuasive use of English. Your Gift will help us develop our existing programmes and create new ones. If you would like to add a codicil in favour of the ESU, you should ask your solicitor to draw up the necessary paperwork to add a specific bequest (a pecuniary legacy). This must be signed and witnessed and kept with your existing Will.
Be sure to include our full name, address and our registered charity number. If you decide to leave a Gift in your Will to the ESU we would be grateful if you let us know. You do not need to give specific details of your Gift, nor is the pledge form legally binding. It is simply a statement of your present intentions.
The ESU is a charity using English as a common global language to nurture dialogue and the exchange of ideas and opinions. The ESU brings together and empowers people of different languages and cultures. By building skills and confidence in communication we give people the opportunity to realise their potential. Worldwide, the members and alumni of the ESU support these objectives. Our vision is that the ESU continues to be recognised for its expertise in providing people, both in the UK and internationally, with the communication skills, confidence and networkingopportunities to realise their potential.
We endeavour to see that the value of good communication as an essential attribute for individual, community and global development and understanding is publicly recognised and widely integrated into education and social policy. For over 90 years, the ESU has provided scholarships, bursaries and exchange opportunities for English-speakers around the globe, as well as promoting the skills of public oratory and debating to school and university students worldwide. With a large programme of activities including competitions, scholarships and seminars, the ESU aims to provide people from all countries, all walks of life and all abilities with the chance to express themselves.
LEAVING A GIFT IN YOUR WILL
The English-Speaking Union Dartmouth House 37 Charles Street London W1J 5ED T +44 (0)20 7529 1550 F +44 (0)20 7495 6108 esu@esu.org www.esu.org
Registered Charity No. 273136
The English-Speaking Union
WHY MAKE A WILL? A professionally drafted, legal Will is the only way to ensure that your property, possessions and savings are left to the people and causes you care about.
WHAT HAPPENS IF YOU DON’T MAKE A WILL? If you die without making a Will (“intestate”) your property, possessions and savings are distributed to your blood relatives in accordance with the laws of intestacy. Nevertheless, your next of kin would have to apply to the Probate Registry for permission to administer your estate. This normally involves costly, professional legal advice. Bank accounts are usually frozen while everything is sorted out. This means that by not leaving a Will you may cause more confusion, suffering and costs to your loved ones at a time when they most need support. The law regarding intestacy is complicated, but briefly, you should bear in mind: • If you die intestate, only spouses, blood relatives and same sex partners, who have registered their partnership under the 2005 Civil Partnership Act, are entitled to a share of your estate. Cohabiting partners and step-children have no entitlement unless they were dependent on you at the time of your death. • Many people assume that everything will pass to their husband or wife when they die. What your spouse receives will depend on the value of your estate and whether you have children. Sometimes part of the estate will be held in trust, which means your spouse will only receive interest from the funds. Items with sentimental value to those close to you, including the family home, may have to be sold
to be able to release the money that your children are entitled to. • If you have no family your assets and wealth will go to HM Treasury. No provision is made for in-laws or friends, no matter what verbal promises you made during your life.
APPOINT EXECUTORS You should decide who you would like to act as executor to administer your estate. It is best to have at least two executors but you can have up to four. You should choose someone who will, hopefully, outlive you. Ask their permission before appointing them. You can also choose a professional, such as solicitor, bank manager or accountant. Be sure to ask them to quote their fee before proceeding.
ASSESS THE VALUE OF YOUR ESTATE Before consulting a solicitor, it is helpful to estimate the value of your estate. Deduct any amounts owing (mortgage, loans etc.) You should also consider the cost of your funeral.
CHOOSE BENEFICIARIES AND GUARDIANS After you have considered Inheritance Tax (see ‘Inheritance Tax Explained’), list the people and organisations you would like to be your beneficiaries, giving their full names and addresses. If you have any dependent children you should also decide who you wish to act as guardians if you and your spouse or partner both die. If the welfare of small children or grandchildren is a concern, you should set up a trust to ensure their inheritance is protected until they reach maturity.
Gifts in your Will are known as legacies. The main types of legacies are: A pecuniary legacy This method allows you to give a specific sum to your chosen beneficiary. The disadvantage of this gift is that its value decreases with inflation. This can be avoided by making provision for index-linking the gift. A reversionary legacy This allows you to provide for a family member, then give to another beneficiary after their death. It involves leaving your assets to a trustee or trustees so that the beneficiaries can enjoy the income during their life time, with the whole or a portion passing to the second beneficiary upon the beneficiary’s death. A residuary legacy The gift of the total residue of your estate or a share thereof after all others sums have been distributed. This allows more flexibility than a pecuniary legacy, as inflation is not a factor. A contingent legacy A legacy can sometimes be made subject to a special condition. This type of legacy usually depends upon a future event, which may or may not happen. For example, you might leave your estate to a named relative but, if they die before you, you could leave your estate to another individual or organisation instead. The event in that case is the death of your relative, which may not happen prior to your own death. A specific legacy This allows you to leave a specific personal possession to an individual or organisation. Examples include property, jewellery, antiques, works of art or stocks and shares.
DONATIONS TO A CHARITY INSTEAD OF FUNERAL FLOWERS Some people choose to give directions for their funeral arrangements in their Will, though it is not obligatory. You may prefer that donations be given to your chosen charity in place of flowers, as a more lasting tribute. The ESU would be very grateful to accept such donations and will enter you in our Book of Remembrance.
COMPLETING THE FORMALITIES Once you have decided on your executors, beneficiaries and funeral arrangements you should appoint a solicitor to prepare a draft Will for you. Once you are satisfied with the draft the fair copy of the Will is prepared for signature. The formal requirements for signing a Will must be strictly observed otherwise the Will could be invalid. Care must be taken in the selection of witnesses, who must be neither beneficiaries nor spouses of beneficiaries. You must sign the Will in the presence of the two witnesses who must then, in your presence and each other’s, sign the Will as witnesses, adding their full names and addresses. The Will must also be dated when signed. It is important to keep your Will in a safe place and to let your executor(s) know where it is. Solicitors will generally keep your original Will in safe-keeping without charge. You should keep a copy of the completed document for yourself or next of kin.
POWER OF ATTORNEY
LEGAL TERMS EXPLAINED
Consider appointing a lasting power of attorney in the event that ill health or loss of mental capacity may result in you being unable to manage your personal and financial affairs.
Administrator(s)
The person or people who will deal with your affairs if there is no Will or Executor.
Beneficiary
Someone who benefits from your Will.
Bequest/Legacy
A Gift made in your Will.
Codicil
An additional document making a change or addition to your existing Will.
The Crown/State
HM Treasury.
Estate
The total of what you leave.
Executor(s)
The person or people you appoint to administer your Will.
Inheritance Tax
The tax that may be due on your estate after your death.
Intestate
The term used to described someone who has died without making a valid Will.
Legacy/Bequest
A Gift made in your Will. The different types of legacy are:
A Pecuniary Legacy
This method allows you to give a specific sum to your chosen beneficiary.
A Reversionary Legacy
You can designate a second beneficiary to receive the legacy after the death of the first one.
A Residuary Legacy
The gift of the total residue of your estate or a share thereof after all others sums have been distributed.
A Contingent Legacy
Your estate will be left to a second beneficiary if the first one dies before you.
A Specific Legacy
A gift of a tangible asset.
Probate
The legal authorisation confirming that your Will is valid, allowing your executors to carry out their duties according to your wishes and the law.
Residue
What is left of your estate after all bequests, legacies, debts, tax and costs have been paid.
The State/Crown
HM Treasury.
Testator
The person (you) who is making the Will.
KEEP YOUR WILL UP TO DATE It is vital that you review your Will regularly to ensure it reflects any change in your circumstances. Minor changes to your Will can be made quickly and easily by adding a separate legal document known as a codicil. This must be signed and witnessed in the same way as the original Will. If you experience any dramatic change in your life, for example if you get married, you may need to make a new Will.
INHERITANCE TAX EXPLAINED Inheritance Tax is usually paid on an estate when somebody dies. It is also sometimes payable on trusts or gifts made during someone’s lifetime. Not everyone pays Inheritance Tax. It is only due if your estate, including any assets held in trust and gifts made within seven years of death, is valued over the current Inheritance Tax threshold. Any legacies left to a spouse, or same sex partner registered under the 2005 Civil Partnership Act, are exempt from Inheritance Tax. Any gifts you make to a UK registered charity – during your lifetime or in your Will – will be exempt from Inheritance Tax. For the current Inheritance Tax threshold and current rate of Inheritance Tax please contact HM Treasury (Probate and Inheritance Tax Helpline 0845 302 0900).