Did you know charities rely hugely on legacies being left in Wills?
Around £3 billion a year is received by charities through people leaving legacies in Wills. Leaving monies to charities is a great way to give back and support many institutions doing extraordinary things for people, animals and worthy causes. If legacies were not left by generous people in their Wills, many charities simply could not function and provide the valuable services they do.
Notwithstanding this but there can be huge tax incentives to leave charities a legacy. If more than 10% of your estate is gifted to charity and your estate is subject to inheritance tax, then the tax rate applied is reduced from 40% to 36%.
Finally, it is worth noting that if you die without a Will and there are no relatives, your estate with pass to the Crown. It is therefore imperative to make a Will and if you do not know who to leave your estate to, then name a charity so that you have peace of mind your estate will be put to good causes.