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Your gifts to charities

How to answer this question in the online Will interview

Boldizsar Dancza avatar
Written by Boldizsar Dancza
Updated over 9 months ago

Do you wish to make any gifts to charity?

Many people choose to support a charitable cause by making a gift to a favourite charity in their Will. Gifts in Wills are so important to charities in the UK. They often make up a large proportion of their funding, and play a significant part in the work they're able do.

You'll see our fantastic charity partners as options for a legacy gift, and you can also choose any other charity. There is no limit to the number of charities you can support with your Will For Good, but also no obligation to leave anything to charity.

A gift to charity in your Will could save a life, help children, older people or those with terminal illnesses or enable a disabled person to retain their independence. Or it could help a charity to undertake long-term research or to embark on a new project. No matter how much you decide to give, it will make a difference to the work that the charity does.

What's more, any gift you make in your Will to a UK charity (or charities in the EU, Norway, Iceland and Liechtenstein) will be exempt from inheritance tax.

The interview allows you to make a gift to one or more charities. This can be a percentage of your estate, a cash gift, or both.

You can choose for a cash gift to be index-linked or not. Index-linking means that the value of the gift will keep pace with inflation between the time you write your Will and the time you die.

If you leave 10% or more of your net estate (i.e. your total assets less liabilities) to charity, you could benefit from a reduction in the rate of inheritance tax from 40% to 36% on the rest of your estate. It is possible to leave a percentage of your estate to one or more charities, in equal or unequal shares.

If you wish to benefit from the reduced inheritance tax rate, you will need to answer the following questions:

  • Do you have any beneficial interests in property that is currently held in trust?

  • Have you made any gifts during your lifetime (other than to your spouse/civil partner or to charity) which you still receive a benefit from?

This information is required to ensure the correct amount of your net estate passes to charity to benefit from the reduced inheritance tax rate.

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