Support your favourite charity - now and in the future, and it is free of Inheritance
Charity begins ... InHouse
Many of us like to support the work of one or two charities - perhaps organisations
that reflect our own interests, or ones that have been of particular help to family
and friends. All gifts to charity are free of Inheritance Tax and so they can reduce
the tax payable on our estate.
Charities need all forms of support - from regular giving through to large one-off
donations. A gift from a Will can make all the difference, especially to small local
charities. However, national figures suggest that only 7% of Wills include a charity.
In order to support the excellent work that many charities undertake, InHouse Wills
& Probate has decided to do something practical about it and are making the following
When drafting a Will for a new client, at client request InHouse will donate 10%
of the total fee to a charity likely to receive a significant* gift from the Will.
If the legacy is to a local charity, InHouse will raise that charity donation to
20% of the total fee.
This means that as you make your Will the charity receives a small donation right
now and then a larger gift from your estate when eventually you pass away. We hope
that it will encourage us all to do a little something that makes a difference to
the society of which we are a part.
If you are not sure which charity to support, we can make some suggestions of local
IHT and Charity: From April 2012 there is a 10% reduction in the IHT bill for an
estate, provided at least 10% of the net estate goes to charity.
Example: Estate is £400K, so £75K would be subject to IHT at 40% (tax bill £30K leaving
£370K to pass on).
But if at least £7.5K goes to charity (free of IHT), then tax bill is (75-7.5) *
36% = £24.3K. Thus charity gets £7.5K and the rest share £368.2K
*For these purposes, we would like to suggest that a “significant gift” is £1,000
or more and the gift should be expected to occur (e.g. not relying on all the family
predeceasing the client for the Charity gift to take place). Of course, you are always
free to makes gifts in your Will exactly as you wish, which may include one or more
charities or indeed no charities at all.
Remember - all gifts to charity from your Will are free of Inheritance Tax, avoiding
the 40% tax.