Gifts to charity
If there is a cause that is close to
your heart, you can choose to leave a gift to the charity of your
choice.
When deciding to leave a gift to a charity, you must make sure
that the charity still exists as a registered charity and that you
have the correct name and address in your Will. To avoid any
possible confusion, it is recommended to quote the charity's
registration number in your Will.
The upside of these gifts is that they are exempt from Inheritance
Tax (IHT), so the value of your gift will stay intact on the
surface. But you must be careful of the way in which the
estate is divided up between the beneficiaries and the charity as it may
increase or decrease the amount given to the charity. For example,
if the beneficiary gets a legacy to bear its own tax and the
charity gets the residue, then the residue can be greater than if
the charity received the legacy and the
individual received the residue subject to IHT.
If you are intending to leave quite a large or
substantial gift to charity, it is wise to contact them first to
inform them of the situation. The charity may also be able to
advise you on what clause should be inserted into your Will to
allow for the gift to go to the charity. You can leave various
different types of gift to a charity in your Will - a specific gift
such as a valuable item of jewellry, a pecuniary gift (a certain
amount of money) or a residuary gift which grants them anything
which remains of your estate once specific and pecuniary gifts have
been distributed.