A Gift that Keeps Giving

For many of us, our Will is the final message we send to our families, friends and wider community about who we are and how we want to be remembered. After taking care of loved ones, consider leaving a gift to charity in your Will. As a result of the Covid-19 pandemic, now more than ever charities rely on income from legacies. In fact, many charities would not survive without such donations and a gift in your Will costs you nothing and ensures the good work of your chosen charity lives on.

Where to start

The pandemic has helped many of us to realise the importance of charities to our lives and the willingness of so many to help in a crisis. • First decide to whom you’d like to leave a legacy.

It can be a cause close to your heart, such as a local hospice, youth organisation or branch of an animal welfare charity, or one of the national/ international organisations such as Save The

Children, UNICEF or Cancer Research UK. • You do not need to write a new Will to include a gift to a charity. A codicil allows for you to make minor alterations to your Will without the need to rewrite the original document. However, if you have more than one or two minor changes, it’s generally recommended that you write a new Will.

A codicil follows a certain format and has the same strict execution requirements as a Will – it will need to be witnessed and signed in the same way as a Will.

It pays to remember a charity

Legacies can reduce the amount of inheritance tax that will need to be paid on an estate. For example, those giving away 10 per cent of their net estate can benefit from a discounted inheritance tax rate of 36 per cent (from 40 per cent) across the remainder of their estate. • Another option could be to consider creating a charitable trust, which would ensure your money is dispensed over an extended period of time.

The trust will be registered with the Charity

Commission, and the trustees will distribute income and also capital to charities following your directions, by way of a ‘letter of wishes’. There will be fees involved in setting up a trust. Contact a law firm/solicitor that specialises in this area for more information.

How your gift is used

Your gift could help your chosen charity in many ways, but if there is a specific way you would like it to be used it is best to talk to them about it first, as it might not always be possible for the charity to use it in the way you wish. • You are under no obligation to tell your chosen charity you are leaving them a legacy – in fact, many people prefer not to say anything.

For more information, visit the Charities Aid Foundation (www.cafonline.org) and Remember a Charity (www.rememberacharity.org.uk).