IHT freeze could benefit legacy giving

[WHILE THE CHANCELLOR’S Autumn Statement disappointed many in the non-profit sector, with concerns raised about the lack of support for charities, one measure – the freeze on inheritance tax – could be good news for future legacy income.

In his statement, Chancellor Jeremy Hunt confirmed that the IHT threshold will remain at its current level until 2028, with the standard and residence nil rate band at £325,000 and £175,000 respectively.

The standard nil rate band has been at £325,000 since 2009, which, if it rose with inflation, would equate to over £400,000 now, according to sector journal Today’s Wills and Probate. By keeping that threshold static, many more estates are subject to inheritance tax. That may lead more people to consider leaving legacies in order to limit IHT.

Lucinda Frostick, director of legacy umbrella body Remember A Charity, explained: “While tax can eat into donors’ pockets and reduce the amount they feel able to give – particularly when living costs continue to rise – inheritance tax differs in that it’s less likely to impact people’s disposable income. Ultimately, the more estates that are eligible for inheritance tax, the more people will be looking for ways to minimise that tax and the more advisers will be focusing on supporting clients in this space. The tax incentives on charitable giving are extremely generous and that makes legacy giving an important part of those discussions.” Charitable gifts are exempt from inheritance tax and when people choose to donate 10% or more from their will their remaining inheritance tax bill is reduced by 10% – charged at 36% rather than 40%. That makes legacy giving hugely efficient for those who wish to support good causes. It also gives solicitors and financial advisers a reason to bring charitable giving into discussions around estate planning and will-writing.

Lucinda Frostick added: “Our behavioural insights solicitor trials show that even the simplest reference during will writing to leaving a gift doubles the chances that the client does so. The inheritance tax freeze will drive more conversations in this space and that is something to be welcomed.

“But it also emphasises just how important it is that that we continue to work closely with the professional adviser community – solicitors, will-writers, wealth managers and others – to ensure they highlight that message to clients in the most effective and informed way.” q

Make surgery your legacy

[ALMOST FIVE MILLION surgical patients are admitted to hospital every year in England alone, so choosing to leave the Royal College of Surgeons of England a gift in your will can have a direct impact on the future of surgery and in maintaining and supporting the enhancement of surgical care for patients.

Legacy gifts: sisters share a vision for the future

Miss Margaret Witt FRCS (1930-2005) was a consultant obstetrician and gynaecologist. In 2009, her significant legacy founded the Margaret Witt Fund, the income of which is used to award annual scholarships to attend an RCS England course.

Over the next 11 years, Margaret’s sister Lorna was notified of the awards given in her sister’s memory and now in 2022, following the sad news that Miss Lorna Bartlett (1931-2021) had passed away, RCS England are honoured to receive a bequest from her to be placed the same fund.

Margaret’s bequest and then Lorna personally seeing the successful outcomes of the awards inspired her to support them too. Together, these sisters have ensured the award’s longevity for decades into the future.

Sharing your vision

Legacies can support any area of the college’s work; unrestricted contributions can be used wherever the need is greatest and many support an individual project or surgical specialty. Ultimately, RCS England want to understand what their supporters would like their gift to achieve. q • To get in touch you can email fundraising@rcseng.ac.uk or if you would like an informal chat, please call Nicola on 020 7869 6086.

Giving hope to the one in six

[ONE IN SIX PEOPLE in the UK has a neurological disorder: that amounts to 16.5 million mothers, fathers, sons, daughters, friends and colleagues. Improving the outcome and quality of the lives of those affected is the driving force behind The National Brain Appeal, which funds pioneering research and provides access to the very latest technology for clinicians and researchers working in this field.

The charity dedicated to raising funds to advance treatments and research at the National Hospital for Neurology & Neurosurgery and the Institute of Neurology – together known as Queen Square – is The National Brain Appeal.

The driving force behind the charity’s work is the aim to improve the outcome and quality of life for everyone affected by a neurological condition. They include brain tumours, stroke, epilepsy, dementias, MS, motor neurone disease and Parkinson’s disease: all of which have no cure as yet. They look to achieve that vision by funding state-of-the-art equipment, major building programmes and life-saving research – over and above what the NHS can provide.

Legacies represent up to one quarter of The National Brain Appeal’s annual income. “They are crucial to the fundraising work we do,” said chief executive Theresa Dauncey. “We’re extremely grateful for every legacy left to us. Leaving just 1% of your estate can make a very real difference and is an investment in the future. The more money we receive, the more support we can give The National Brain Appeal’s chief to the National Hospital, which executive Theresa Dauncey in turn improves the prospects for those affected by neurological disorders.”

Penelope was diagnosed with multifocal motor neuropathy (MMN) in 2004 at the National Hospital for Neurology & Neurosurgery and attends a day care clinic run by a team of specialist nurses. “My own personal journey with MMN makes me want to give back in whatever way I can,” she said. “That is why I have left a gift in my will to The National Brain Appeal. I want to help to fund crucial research into all neurological conditions going forward.” Meta is a former National Hospital patient. She had successful surgery for a benign brain tumour there in 1988. Since then both her husband Penelope attends a day care clinic and sister were diagnosed with run by a team of specialist nurses neurological conditions.

She explained: “My husband was diagnosed with Parkinson’s and sadly passed away just a few months ago. My sister has multiple sclerosis – she’s been living with it for more than 25 years now. These are cruel diseases for which there is no cure and little hope.”

With that in mind Meta has made The National Brain Appeal a major beneficiary in her will.

“The lack of a cure for so many debilitating neurological conditions is a strong motivator for me to want to Meta has made The National Brain help,” she continued, “and by Appeal a major beneficiary in her will leaving a legacy I can be part of something that will provide hope for others.”

You choose

Now more than ever, benefactors to The National Brain Appeal can control where they would like their money to go. There are six specific funding areas for which individuals can make a legacy pledge: • Neurology: funding initiatives to improve diagnosis and treatment, and • provide facilities for those with on-going neurological conditions • Neurodegeneration: supporting projects which help people with • conditions where there is progressive degeneration • Neurosurgery: providing state-of-the-art equipment and facilities for the • UK’s largest neurosurgery unit • Technology and innovation: supporting projects which translate • groundbreaking ideas into better results for patients • Education and staff development: investment to provide the best • opportunities and attract the best people in the field • Queen Square: new facilities and staff-led projects at the National • Hospital and the Institute of Neurology

For those who do not specify a funding area, their gift can be put towards an area with the most urgent need. q Without the generosity and foresight of those who leave a legacy, we simply could not support the number of vital projects that we are currently able to.

• For more information about legacies and the National Brain Appeal, contact info@nationalbrainappeal.org or view the legacy section of the website at nationalbrainappeal.org/legacy.