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Our Wills, Trusts and Probate department has raised over £5 million for charities that are part of the National Free Wills Network and a further £300,000 for Guide Dogs for the Blind under the October Free Wills Month Scheme.
The National Free Wills Network comprises of 236 charities. The network aims to provide complimentary Will writing services to charities’ recognised supporters.
Our Wills, Trusts and Probate department has answered some frequently asked questions regarding leaving a gift in your Will.
Q: What is the difference between a lifetime gift or a gift left in a Will?
A: The primary difference between a lifetime gift and a gift left in a Will lies in when the gift is made effective:
A Lifetime Gift refers to a gift made during a person’s lifetime, where they transfer ownership or assets to another individual or entity. Lifetime gifts can include giving money, property, or other assets while the donor is still alive.
A Gift left in a Will, is also known as a testamentary gift. This refers to a gift specified in a person’s Will to be distributed upon their death. The assets or property outlined in the Will are transferred to the designated recipients after the individual passes away, according to the instructions laid out in the Will.
To summarise, a lifetime gift is made during the donor’s lifetime, while a gift left in a Will takes effect upon the donor’s death.
Q: Should I leave a gift to charity in my lifetime or in my Will?
A: This is completely up to you however, not only does leaving a gift in your Will mean that the gift is not payable until your death, it can also have Inheritance Tax(IHT) benefits.
Q: What Inheritance Tax benefits does leaving a gift to charity in my Will have?
A: Any gift you leave to charity in your Will is free of Inheritance Tax. If your estate is subject to Inheritance Tax, a gift to charity in your Will of at least 10% of your ester can reduce IHT from 40% to 36%.
If you decided to leave your entire estate to charity, even if the value of your estate is over the threshold at your death, your estate will be completely exempt from paying IHT.
Q: Is there a minimum amount I have to leave?
A: The great thing about charity Will schemes is they do not make any sum of gift obligatory. You can leave as little or as much as you would like and can absolutely tailor this gift to your personal financial circumstances.
Q: Do I have to leave money?
A: Absolutely not! You are able to leave any part of your estate to charity, whether it be a gift of money, a gift of personal belongings or even a gift of property.
Q: Can I make sure that a particular department or cause within my chosen charity receives the gift rather than the charity choosing how to allocate it?
A: Yes you can. Your Will writer is able to include wording within the gift to charity to make it more specific to where within the charity you would like your gift spent or allocated.
Q: What happens if my chosen charity doesn’t exist anymore at the date of my death?
A: Do not worry! Your Will writer can include wording within your Will to provide for your Executors to choose a charity with similar objectives or, if your chosen charity has amalgamated at the date of your death, your Executors can pay the gift to the amalgamated charity.
Q: What if I change my mind?
A: Do not worry! You are able to amend your Will or prepare a new Will (subject to fees or a further charity scheme referral) as little or as often as you wish during your lifetime, provided you have the sufficient mental capacity to do so.
If you would like additional information on the above, please contact our Wills, Trusts and Probate department by filling in our contact form or call our team on 020 3540 4444. For more information on Wills, Trust and Probate please click here.
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