People are leaving less to charity in their wills

SCOTS are leaving less money to charities after being forced by the economic downturn to modify their wills, according to a law firm.

Charities are likely to see the money left to them dwindle in the coming years as people reduce their donations in order to ensure their families do not lose out as a result of the credit crunch.

Fiona Rasmusen, partner at Gibson Kerr in Edinburgh, said many people were amending their wills after seeing the value of their savings and investments decline, with charities bearing the brunt.

"It would appear there is a desire to avoid any upset in a family by ensuring donations to loved ones do not reduce as a result of the credit crunch," she said. "The idea is that, if you have a property or share portfolio that is worth 50,000 less than it was a few years ago, you will want to ensure that your family doesn't lose out as a result of this."

Consequently, money that would have gone to charity will instead make up for the shortfall in the amount left to families. Rasmusen suggested that, in such cases, a will in which 70 per cent was being given to family and 30 per cent to charity may now be closer to 80 or 90 per cent in favour of family legacies.

"Charities are likely to suffer. A few years ago, you would get people leaving fairly large donation to an organisation such as the Scottish SPCA or Cancer Research, but these legacies might become much rarer."