Including a gift to charity in your will is a meaningful way to support a cause close to your heart. Whether it’s a local hospice, an animal shelter, or a national research organisation, many people choose to leave a legacy that lives on long after they’re gone.
At Dudden Law, we’re often asked how this process works, what the rules are, and what people need to consider.
In this blog, we’ll walk you through the key information about leaving charitable gifts in your will, from types of gifts to tax advantages and how to make sure your wishes are properly recorded.
Why Leave a Gift to Charity?
Leaving money or assets to charity is known as making a charitable legacy. For some, it’s a way to give back. For others, it’s about making a lasting difference.
Gifts in wills are vital to many charities. Some rely on them for a significant portion of their funding. Even a small gift can have a big impact.
Types of Gifts You Can Leave
There are a few different ways you can leave something to charity:
- Pecuniary gift: This is a fixed sum of money. For example, “I leave £1,000 to the British Heart Foundation.”
- Residuary gift: This is a percentage of your estate once all debts, taxes, and other gifts have been settled. For instance, “I leave 10% of my estate to Cancer Research UK.”
- Specific gift: This could be a particular item, such as jewellery, property, or shares.
- Reversionary gift: This allows someone (like a spouse) to benefit from an asset during their lifetime, after which it passes to the charity.
Tax Benefits of Leaving to Charity
One of the main advantages of leaving money to charity is that it can help reduce the amount of Inheritance Tax your estate has to pay.
At present, gifts to UK-registered charities are exempt from Inheritance Tax. If you leave 10% or more of your net estate to charity, the rate of Inheritance Tax on the rest of your estate can be reduced from 40% to 36%.
This can make a notable difference, both to the value of your gift and to the overall tax position of your estate.
Choosing the Right Charity
It’s important to make sure that the charity you wish to support is a registered UK charity. You can check this using the Charity Commission’s website.
You should include the full name, address, and registered charity number in your will to avoid confusion, especially if there are several charities with similar names.
Some people choose one charity, while others divide their gift between a few. Either approach is fine, as long as the instructions are clear.
Making the Gift Legally Binding
For a gift to be valid, it must be properly set out in a legally recognised will. Vague wording or informal notes can lead to disputes, or even result in the gift failing altogether.
When writing or updating your will, a solicitor can help you ensure that:
- Your wishes are clearly written
- The charities are properly identified
- The wording used is legally appropriate
- Your will meets all formal requirements (such as being witnessed correctly)
Can Family Members Challenge a Charitable Gift?
It is possible, in certain circumstances, for family members or dependants to contest a will. This often happens under the Inheritance (Provision for Family and Dependants) Act 1975 if someone feels they have not been adequately provided for.
This doesn’t mean you cannot leave money to charity, but it’s worth discussing your plans with a solicitor, especially if you intend to leave a large gift or exclude certain relatives.
Should I Tell the Charity?
You’re not required to inform a charity about your gift, but many people do. Charities are usually very grateful and may invite you to join a legacy scheme or share how your gift could help.
It’s also helpful for administrative purposes after you’ve passed, as the charity will know to expect a gift and can assist your executors if needed.
Final Thoughts
Leaving a charitable gift in your will is a generous act — one that can reflect your values and continue your support for causes you care about.
With the right advice, it’s a simple process to put in place. At Dudden Law, our wills and probate specialists can guide you through each step, ensuring your wishes are respected and your legacy lives on.
Thinking about leaving a gift to charity in your will? Get in touch with our team today to talk through your options.
Written by
Carrieanne Greenway
Client Manager
