How to leave a charitable gift in your Will and what to consider

Leaving a charitable gift in your Will is a powerful way to support causes you care about while also planning your tax affairs. Whether you want to name a specific charity, leave a share of your estate, or give a particular item, there are simple steps you can take to ensure your gift has the impact you intend.

Why leave a charitable gift in your Will?

Donations left in wills are an important source of funding for UK charities. Gifts in wills can be tax efficient because charitable legacies are exempt from inheritance tax. If you want to ensure a charity benefits from your estate, leaving a clear instruction in your Will is the best way to guarantee your wishes are followed.

Types of charitable gifts

You can leave a charitable gift in several ways. Each has different implications for you and your beneficiaries:

• Pecuniary legacy - a fixed cash sum. This is straightforward but may lose value over time compared with the rest of your estate.
• Specific gift - a named asset such as a property, artwork or shares. Make sure any asset is easy to transfer and that the charity can accept it.
• Residual legacy - all or a share of what remains after other gifts, debts and expenses are paid. This keeps the gift in line with the total size of your estate.
• Contingent gift - a gift that applies only if another beneficiary dies first. This can be useful in family situations.

Choosing the right charity and wording

If you name a specific charity, include its registered charity number in your Will. Charity names can change and numbers ensure the right organisation receives your gift. If you prefer to leave the choice to your executors or trustees, leave a clear written statement of your wishes so they can follow your intentions.

Tax and inheritance implications

Charitable legacies are exempt from inheritance tax, and if at least 10% of a taxable estate is left to charity the standard rate of inheritance tax on the remaining estate can fall from 40% to 36%. This means increasing a gift from 5% to 10% may benefit both the charity and your other beneficiaries by reducing the overall tax bill. For full details on inheritance tax rules, see the government guidance at gov.uk/inheritance-tax.

Protecting your legacy from challenges

There are legal grounds on which someone might challenge a Will, for example under the Inheritance Act if they are financially dependent and feel they have not been reasonably provided for. You can reduce the risk of successful challenges by keeping clear records, discussing your plans with family where appropriate, and ensuring you have mental capacity when you make your Will. You may also want to put lasting decisions about your finances in place now by creating a Lasting Power of Attorney.

Updating your Will and using codicils

If you already have a Will and decide to add or change a charitable gift, you can either make a new Will or add a codicil. A codicil is suitable for small changes, such as adding a charity or increasing a gift. If you make a new Will, ensure it clearly revokes all earlier Wills and codicils to avoid inconsistencies. If you are unsure, our team can help you with a smooth update - see our will writing services.

Practical tips and examples

• If you want to support a local hospice or national charity, check whether they accept the type of gift you plan to leave, especially for property or shares.
• Consider leaving a small pecuniary gift plus a residual gift, so the charity benefits now and as your estate changes in value.
• Talk to the charity about the sort of legacy you prefer - some people specify funds for particular projects, while others leave an unrestricted gift so the charity can direct funds where most needed.

Example: You leave 10% of your estate to a mental health charity and the rest to family. Because 10% goes to charity, the inheritance tax rate on the taxable part of the estate reduces to 36%, meaning the charity and beneficiaries both benefit.

When you should get professional help

If your estate is complex, includes foreign assets, or you want to set up a trust to manage how a legacy is used, speak to a professional. We can advise on setting up trusts, tax-efficient giving and writing clear clauses that reduce the risk of disputes. See our trusts and probate pages for more information.

If you are ready to add a charitable gift or want help updating your Will, contact us to talk through your options: Get in touch or create an online Will with support from our team.

Remember, a well-drafted charitable gift in your Will can do a great deal of good and leave a lasting legacy for the causes that matter to you.

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