There are a number of important and useful things to be aware of when leaving a legacy to a charity.
Locating a Solicitor
It is always advisable to instruct a solicitor to make sure your Will is properly drawn up, valid and enforceable.
If you have not made a will and you need to locate a solicitor, please telephone Vivienne Clarke on 020 7730 8263 or email legacies@fote.org.uk. Alternatively, you can contact the Law Society on 020 7242 1222. If you have made a Will and wish to leave a legacy to a charity, your solicitor can add a codicil to your Will.
Inheritance Tax
The current level for paying inheritance tax is £285,000. One way of avoiding paying inheritance tax is to leave it to an exempt beneficiary, such as your spouse, civil partner or registered charity. A simple method, when leaving it to charity, is to leave everything above the tax threshold to a charity, as the value of the charitable gift is deducted from your estate before inheritance tax is deducted.
Charities are exempt from Capital Gains
If the Executors of a will sell assets that have increased in value since that date of the death of a testator, there may be capital gains liability, this is because the executors have gained. Where a number of charities are residuary beneficiaries of the estate it makes sense for the assets to be appropriated to the beneficiaries prior to the sale and then sold on their behalf. Charities are exempt from capital gains and their share will not be liable to capital gains.
Keep your Will Safe
Keep your Will safe, either at home, with your solicitor or at a bank and tell your Executors where to find it.