How to Leave Money to Charity in Your Will

Three ways to give

You can leave a charity a fixed cash sum, a particular item or asset, or a share of whatever is left once everything else has been paid. That last option, a share of the residue, is what most people choose. A fixed £5,000 gift written in 1990 is worth far less today. Five per cent of the residue keeps pace with the size of your estate.

Name the charity properly

Charities merge, rename, and occasionally close. Give the charity's full name and its registered charity number so there's no doubt which one you mean. It's also worth allowing your executor to pay the gift to a similar charity if the one you named no longer exists when you die.

The inheritance tax advantage

Anything you leave to a UK registered charity is free of inheritance tax. It comes off the value of your estate before any tax is worked out. There's a second benefit on larger estates: leave at least 10% of your net estate to charity and the inheritance tax rate on the rest drops from 40% to 36%. The charity can end up costing your other beneficiaries far less than the headline figure.

Tell people

A gift in a will stays private until the will is read, which may be after your funeral. If a cause matters to you, say so while you can. Some people add a short letter of wishes explaining the reasons behind a gift. It carries no legal weight, but it helps the family understand.

With PureWill

You can name a charity as a beneficiary alongside family and friends, set the percentage it receives, and list it as a backup if your other beneficiaries die before you. That covers most straightforward estates. For a very large gift, or to set up a charitable trust, take advice from a solicitor first.