Many people want their Will to reflect not only their wishes for loved ones, but also the causes that mattered to them during their lifetime. Leaving a donation to a charity in your Will is a meaningful way to support organisations you care about and create a lasting legacy. But how does it work, and what should you consider before doing so?
Can I Leave Money to a Charity in My Will?
Yes. You can leave a gift to a charity in your Will, provided the charity is properly constituted and identifiable. This is known as a charitable legacy.
You do not need to be wealthy to leave a donation in your Will. Gifts can range from a modest sum of money to a percentage of your estate, or even a specific asset such as property or shares.
Types of Charitable Gifts In a Will
There are several common ways to leave a donation in a Will:
- A fixed sum – for example, leaving £5,000 to a named charity
- A share of your estate – such as 10% of your estate after debts and expenses
- A specific gift – for example, shares or a particular asset
- A residuary gift – where a charity receives all or part of what remains after other gifts have been distributed
Do I Need to Tell the Charity?
You are not required to inform a charity that you are leaving them a gift, but some people choose to do so. Letting the charity know can help ensure your gift is used in line with your wishes, and charities are often grateful for the opportunity to acknowledge your support.
If you do notify a charity, it is important to remember that the wording of your Will should still be drafted carefully and independently to avoid any ambiguity or undue influence.
It is also important to remember that your Will is not written in stone and you may change your Will in the future to adapt to changing circumstances. You may therefore not want to discuss the gift you are leaving as this may change over time.
Tax Benefits of Leaving a Donation In a Will
Charitable gifts in a Will are usually exempt from Inheritance Tax. This means the value of the gift to the charity is deducted from your estate before Inheritance Tax is calculated.
In addition, if you leave at least 10% of your net estate to charity, the rate of Inheritance Tax on the remainder of your estate may be reduced from 40% to 36%. This can be an effective way to reduce the overall tax bill while supporting a cause close to your heart.
Will Leaving a Donation Affect my Family?
For most people, leaving a charitable donation does not cause any difficulty, provided the Will is properly drafted and your overall wishes are clear.
However, it is important to ensure that your Will still makes reasonable provision for your family and dependants. If a Will does not adequately provide for certain individuals, it may be open to challenge under inheritance legislation.
Taking legal advice can help strike the right balance between supporting a charity and protecting your loved ones.
Why Proper Drafting Matters
When leaving a donation in a Will, accuracy is essential. Charities should be named correctly, ideally using their full legal name and registered charity number. Poor or unclear drafting can lead to delays, disputes, or even the gift failing altogether.
A professionally prepared Will ensures your intentions are carried out smoothly and reduces the risk of complications for your executors.
How NE Family Law Can Help
We understand that your Will is deeply personal. Whether you wish to leave a donation to a charity, support a local cause, or ensure your family is fully protected, we can guide you through the process with clear, practical advice.
Our experienced team will ensure your Will is drafted correctly, reflects your wishes, and takes account of any tax or legal implications.
If you are considering leaving a donation in your Will, or would like to review an existing Will, please contact us to arrange a consultation.
