What is a Legacy and why are they important?
Including a charity in your will is a way to bring dignity, meaning and purpose to a life well lived.
Many of us will have specific charitable causes that we like to support and while we may give to these causes during our lifetimes, we can also provide for them after we have gone.
Many charities refer to these gifts as legacies or charitable bequests. Leaving a charity gift in your will is a way of showing you care and want to help. As gifts to charities are exempt from inheritance tax, this can be a particularly tax-efficient way to not only benefit a cause you care for, but will also reduce the amount of inheritance tax payable after your death, which also helps your other beneficiaries.
Of course, family and friends come first, but after you have given them a helping hand, please will you consider helping Island Farm Donkey Sanctuary?
Why do I need a will?
Naturally, everyone wants to make sure their loved ones are looked after when they’re gone. However, actually confronting the issue and making plans is something that people generally tend to shy away from. If you have not written a will it could result in your loved ones not receiving anything after your death. If someone dies intestate, that is, without having written a will, their estate is divided up according to preset rules enforced by HM Government. This may mean that family and friends and any charities that could have benefited miss out entirely. Making a will ensures that the money you leave behind goes exactly where you want it to.
Gifts in wills, also known as legacies, are an important source of income for charities in the UK. They can help charities with their long-term planning, especially if they’ve been notified of your intent beforehand.
In the UK, legacies can be separated into three categories:
▪ Pecuniary – a fixed sum of money;
▪ Specific – individual possessions; and
▪ Residuary – a percentage of the net value of an estate.
If you feel you would like to leave a gift to a charity in your will, but you are not quite ready to make the decision legally binding, you can simply fill in a pledge form which will notify your chosen charity of your intention to leave a gift to them in your will.
Why do I need a solicitor’s help?
Many people are attracted by the low cost of using DIY packs or internet wills, but while they may be cheaper, if you don’t fully understand the law surrounding your legacy you may expose your will to costly challenges after your death. Using a solicitor is the only way to ensure that your will is valid under English law.
Without a valid will, complex cases can often take months or even years to be resolved. This can create additional pressures for your family and friends at a time when they are already under stress. Having your will drawn up by a professional is a sound investment for your loved ones’ futures. A solicitor specialising in wills and probate can guide you through the various pitfalls and explain the options most suitable to your circumstances. Such solicitors train for many years and they can ensure that your will protects your assets from inheritance tax and other potential obstacles.
What if I’ve already made a will?
If you have already provided for your family and friends by making a will, but would like to amend it to include a gift to your favourite charity, you can do so by drawing up a codicil. A codicil is an addition or an amendment to your will and requires a form to be filled out. You can then take the completed form along to your solicitor, who will incorporate it into your will, making it legally binding according to your specific wishes.
How often should I update my will?
Once a will is made, it’s important to keep it up to date and account for any changes in your circumstances. For example, you may have married, had a child or grandchild, or moved home, or your financial situation may have changed. It’s also advisable to reconsider the contents of your will every two–three years to make sure it still reflects your wishes.
Where can I go for more information?
For those that choose to leave a charitable gift, there are a few campaigns that can help point you in the right direction:
Will Aid, takes place every November and because it only runs for one month a year, has a straightforward payment process, and as the solicitors involved are doing their work for a good cause, it has significant uptake – the scheme raised a total of £5.5 million in legacies for charities in 2010.
Free Wills Month (FWM) runs every March and October and encourages those aged 55 and over to update their wills or write new ones free of charge.
Island Farm Donkey Sanctuary is a member of Charity Choice, the UK’s largest charity directory, providing detailed information on over 160,000 registered UK charities. You can discover a wealth of information on legacies at www.charitychoice.co.uk