Leaving a Legacy to Charity in Your Will

A recent report by Co-Op Legal Services shows that charitable gifts included in Wills have increased by 30% in the past year.

The report indicates that just 6% of the UK population bequest money to charities in their Wills, but this equated to legacies of £2.85 billion in the past year.

Charities supporting cancer research, animals, and poverty reduction receive the highest donations from legacies in Wills.

The private law firm Wilsons obtained separate data from HM Revenue and Customs which shows that the number of charitable bequests in excess of £1 million has also increased by 27% over the past five years.

Between 2015 and 2016, 3,630 people left charitable legacies of more than £1 million. This includes a £41 million legacy left by Richard Cousins, former Chief Executive of food company Compass [https://www.georgegreen.co.uk/site/george-green-blog/legacy-in-will-of-41-million-to-oxfam], and £230 million left in the Will of Steve Morgan, founder of the housing company Redrow.

For those whose estates are likely to incur Inheritance Tax (IHT) bills, any charitable donations left in your Will are either deducted from the value of your estate before IHT is calculated or will reduce the IHT rate from 40% to 36% if you leave more than 10% of your estate to charity.

Whether you have a little or a lot of money in your estate, you should think about leaving a legacy to charity in your Will for both financial and philanthropic reasons.