Almost half of Millennials have thought about leaving a charitable bequest in their Will, research has found, showing the growing popularity of gift-giving in Will-writing.
A survey of 250 Millennials, broadly defined as people aged between 26 and 40, found that 44 per cent of those asked were considering leaving a charitable donation in their Will.
However, a much smaller percentage, just three per cent of respondents, have chosen which charity or organisation they would like to leave their gift to.
The amount of goodwill towards the concept is a testament to how the act of leaving a gift in your Will has several positive impacts.
Firstly, it helps contribute to a good cause, whether the charitable recipient is big or small.
Secondly, there are significant tax advantages involved as a gift to charity is free from Inheritance Tax, which is charged at 40 per cent on any estate worth more than £325,000.
Donating money to charity can in some instances lower your Inheritance Tax bill because if you leave 10 per cent or more of your estate to charity, you will fall into the lower Inheritance Tax rate of 36 per cent.
So, if you are considering leaving a charitable donation in your Will but are unsure where to start, what points should you be considering?
Do your research
Make sure the charity you want to help is a reputable organisation. For instance, are they registered with the Charity Commission? It should be noted that some organisations may not be registered with the Charity Commission, but they can still benefit from a gift if the group fulfils the definition of a charity as outlined in the Charities Act.
Talk it through with loved ones
While some loved ones will be happy with your decision, there is the possibility that some may not agree. This tension could potentially lead to a legal dispute after your death, as a beneficiary could dispute your Will if they felt it did not make enough provision for them. To avoid this, talk through your decision with loved ones and potential beneficiaries so they understand your wishes.
Due to the tax incentives to leave gifts in a Will, you could end up being able to leave more of your money to your beneficiaries.
This all depends on the size of your estate and how much money you would like to donate. If you are leaving a gift to bring down your Inheritance Tax bill, be sure to get advice first.
Are you considering leaving a charitable gift in your Will? For help and advice with Wills and related matters, contact our expert team today.