Tis the season to be giving by Karen Grimm

There are many reasons why you may like to consider leaving a gift to charity but you may like to consider the following points.

My Clients are often minded to benefit a local charity or local branch of a national charity.  In respect of both of these it is important to check whether or not they are separately registered with the Charity Commission.  If this is not the case then your Will must clearly state that your gift is for the use of a local branch.

You may also have a particular affinity with that particular charity’s objects and works and make a gift for a specific purpose.  Do bear in mind that the charity’s objects and works can change and as your gift will not be available for their general purposes and to avoid any difficulty I recommend that you contact the charity to confirm that such a gift will be workable within the constraints of its constitution and general charity law.

There are a number of ways in which you can benefit a charity and many of my Clients prefer to either leave a pecuniary gift or otherwise a gift of some or all of their residuary estate to charity.  Do bear in mind that pecuniary gifts will be paid before your residuary estate is distributed and there may well be a change in the value of your estate between the date of making your Will and your demise.

The Finance Act 2012 introduced a reduced rate of inheritance tax which appeals to many of my Clients and instead of the usual 40% inheritance tax a reduced rate of 36% will be payable if you give 10% of your net estate to charity.

Whatever the reason, charities gifts to charities are free from inheritance tax and can be an effective tax planning strategy.

For further information please contact Karen Grimm at Rowberry Morris Solicitors on 0118 958 5611