From experience writing Wills I have found two types of situation where people might want to benefit a charity in their Will. I have detailed these below:
1) People with little or no family. We all know someone, with no child, perhaps, who has never married. They may have little contact with any family member. Often, they will know of family members. These may be cousins or nephews or nieces, however, they may not know them well enough, or like them enough, to leave them their estate on death. Such people may well consider
leaving their estate to charities in their Will.
If we consider a typical estate of £300,000 to be left to charities our testator (the person making the Will) could benefit ten charities with £30,000 each. They may feel this is too much to give to an individual charity. If they benefit twenty charities, the amount each would be £15,000. In some cases, they may need help in choosing the charities, or the type of charity.
2) The second type of situation is where a person has family who will benefit, but they have an interest in a charity or charities and they decide they would like to also benefit these as well. In this second situation, the gifts may typically be smaller than in the first but they will still be appreciated by the named charity.
In the first example, the testator may require assistance in deciding which charities to choose. There are people who can help. Firstly, they will need to write a Will and we can assist with this.
There are also local charities, which specialise in making gifts to good causes in their region, which can be very helpful in situations like this.
Finally, a further benefit of such gifts, if they are going to a registered charity, is that they pass out of the estate free of inheritance tax. This tax is applied to estates over £325,000 in value, at the rate of 40% on the excess.
Since it was founded 21 years ago, Cumbria Community Foundation has given grants of over £50 million to causes across Cumbria to address disadvantage in our communities. Those grants are funded by generous individuals and companies who have set up grant making funds or made direct donations to the Foundation.
Using your Will to set up a grant making fund with the Foundation is a tax efficient way of ensuring your legacy will benefit Cumbria and Cumbrians in perpetuity. Options are discussed in the Foundation’s Guide to Giving which can be found at the following link https://www.cumbriafoundation.org/guide-to-giving/ or contact email@example.com for more information.
What to do next ?
If you would like to discuss your circumstances with regards to writing a Will, setting up a trust or a lasting power attorney, then please call 0845 689 1495 or get in touch via our secure contact form here .