How can you donate to a charity when you pass away?
Remembering a charity when you pass away is becoming increasingly popular, with 1 in 5 UK adults now including a charitable gift in their will, up more than 40% in the past decade. By donating to charity, you can make a difference in the lives of others. You can help to support causes that you care about, such as education, healthcare, or environmental protection. It can also be a lasting legacy that will benefit others long after you are gone.
There are a few ways to donate to a charity when you pass away, inclduing:
Direct donation: You can leave a specific amount of money or assets to a charity in your will. This is the most common way to donate to charity in a will and can reduce the IHT liability of your estate.
Residue gift: You can leave the residue of your estate to a charity. The residue is the remaining amount of your estate after all of your debts and other liabilities have been paid. This can also reduce the IHT liability of your estate.
Gift in trust: You can set up a trust to hold assets for a charity. The trust will distribute the assets to the charity according to your wishes.
Here are some additional things to keep in mind about donating to charity in a will:
You can donate to a specific charity or to a group of charities.
You can specify how you want the money or assets to be used by the charity.
You can change your mind about your donation at any time by making a new will.
If you donate to charities registered with the Charity Commission, there is no IHT due on the gift and if you give more than 10% of your estate to charity, it will reduce the rate of IHT on chargeable assets from 40% to 36%.
It is important to choose a charity that you are passionate about and that you believe in. You should also make sure that the charity is reputable and that it will use your donation wisely.
Here are some tips for choosing a charity:
Do your research: Read about the charity's mission and goals.
Check the charity's financials: Make sure the charity is financially stable and using a large percentage of donations to fund good causes rather than pay for administrative expenses.
Talk to people who have donated to the charity: Get their feedback.
Make sure the charity is registered with the Charity Commission: This is the government body that regulates charities in England and Wales.
By following these tips, you can help to ensure that your donation to charity makes a difference. It can be a great way to show your commitment to a cause that you believe in and to make a difference in the world long after you’re gone.
