Where there’s a will there’s a way to secure your legacy
People are being encouraged to consider the good causes they care about, alongside their loved ones, when writing or updating their will.
New data from Remember a Charity reveals that nearly one in three aged 40-plus with a will have included a charitable gift in their provision.
The organisation – a registered charity that encourages more people to leave a gift to charity in their bequests – also found that people often write their wills earlier than many think, with 50 per cent drafting their first document before the age of 50. However, almost two in five people aged 40-plus have not yet written a will at all.
The charity says that although more estates are facing Inheritance Tax (IHT) charges, many – including 30 per cent of millionaires – are unaware of the financial incentives of charitable gifts in wills.
Remember a Charity says such gifts are an increasingly popular and tax-efficient way of supporting good causes, pointing to the fact that the UK public donates in excess of £4 billion to good causes each year in this fashion, sustaining vital charitable services in challenging economic times.
The consortium of 200 charities is encouraging people writing or updating a will to consider all the things they care about – loved ones and good causes alike.
Remember a Charity says writing or updating a will is essential for anyone who wants to influence how their assets will be distributed beyond their lifetime. It is a key opportunity to protect family, loved ones, and any good causes they wish to support.
Good estate planning can also help families reduce their IHT bill. Charitable gifts in wills are free of tax, with donations of 10 per cent or more of the net value of the estate reducing the IHT rate from 40 per cent to 36 per cent. However, even amongst wealthier UK households, a significant knowledge gap remains about these tax incentives.
This is despite the fact that IHT receipts continue to rise, with Chancellor Rachel Reeves’ Autumn Budget revealing that IHT thresholds will be frozen for another year (until 2030/31).
With the UK Government’s plans to draw inherited pension pots into the scope of IHT from April 2027, experts are predicting that around twice as many estates will be liable for the tax by 2031, prompting more households to think carefully about how they preserve and pass on wealth.
Solicitors, will-writers and financial advisers are already reporting a growing appetite for inheritance planning, with 60 per cent saying they have seen a rise in demand for estate or tax planning advice, and 65 per cent saying they expect charitable tax incentives to become even more important to their clients in the years ahead.
With the UK entering the largest “intergenerational wealth transfer” in history, and many more estates facing an IHT liability, having an up-to-date will in place has never mattered more, according to Remember a Charity.
Lucinda Frostick, director of Remember A Charity, says: “The new year is a great opportunity for us all to get our affairs in order and it’s deeply inspiring to see that, for so many people, that includes good causes as well as our loved ones. We’re seeing a growing sense of social responsibility and a real desire to leave the world a little better.
“No matter the size of the gift, remembering a charity in your will can be one of the most empowering things to do – helping to sustain urgently-needed charitable services for future generations.”
Michelle Young, senior solicitor at Wright, Johnston & Mackenzie, comments: “Giving to charity is a very natural part of life for many people in the UK, but it’s not always something they think about when planning their estate.
“We explore with clients where they want their wealth and possessions to go. This includes ensuring they know they have the option to give to charity, that they understand how it all works and any tax incentives, which can make it an even more advantageous choice.
“We find that giving in this way really resonates with people, many of whom are choosing to remember good causes in their estate planning.”
Find out more online about leaving a gift to charity in your will here
Leaving a charitable gift in your will is simpler and less costly than you may think. Taking these three straightforward steps can help set your legacy in motion, making a lasting difference for those in need.
1 Start by making sure you know the name, address, and registered number of the charity or charities you would like to support.
2 Get in touch with a professional adviser, such as a solicitor or will-writer to contact the charity, or go online to write your will.
3 Once you’ve taken care of your loved ones in your will, simply include the details of any donations you wish to make, ensuring your gift is directed exactly where you desire it to go after you’ve gone.
CASE STUDY Marianne Meehan and her gift to CHAS (Children’s Hospices Across Scotland)
Marianne Meehan worked for a firm partnered with charity CHAS (Children’s Hospices Across Scotland) to help develop its strategy.
She interviewed over 200 stakeholders, from families, nurses, doctors, as well as senior CHAS figureheads. It left a lasting impression.
“I felt so privileged to work across CHAS,” Marianne recalls. “Their stories deeply touched me, and that feeling has stayed with me.”She admits to knowing little about CHAS beforehand, but spending time in its hospice changed everything.
“I thought it might be a gloomy place – but it was the complete opposite. It was warm, positive, friendly and had a lovely energy about it. I was struck by the supportive community they’ve built over the years.
”One memory stands out vividly: “I spoke to a mum who told me how much she valued quality time with her children there, they could enjoying swimming together and she was able to get some time for herself to go into the local town for to get her hair and nails done – something so simple – because she knew her children were safe and cared for. CHAS gives families those precious moments of normality.”
Marianne was also moved by the balance CHAS strikes: “It’s an open, friendly space, but also discreet and respectful when it needs to be. The staff are amazing.”When Marianne began planning her will, CHAS was in her thoughts.
“I’d been indecisive about what to do beyond supporting my family,” she recalls. “Then I heard a CHAS legacy advert on the radio, and I knew instantly this was what I wanted to do to make a difference to families in the future.”
Marianne included a gift in her will. “I feel so happy knowing I can support CHAS in this way. I can’t speak highly enough of the charity and its wonderful staff.”
Her advice to others? “Don’t underestimate what your gift could mean to families. Imagine the most committed person you’ve ever worked with – and multiply that by ten. That’s the commitment of CHAS staff. That’s what your gift will support.”
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