New research suggests that the number of people leaving money to charities in their Wills rose significantly last year.
According to a survey recently highlighted in The Telegraph, approximately one in ten Britons left money to a charitable or not-for-profit organisation in their Will last year, up from just one in 16 people in 2015.
Poverty and homelessness charities were the most popular amongst those who made charitable donations, closely followed by cancer charities and animal charities.
The news echoes separate research published by the Government earlier this year, which previously revealed that charitable donations left in Wills were growing increasingly popular following important Inheritance Tax (IHT) changes which took effect in 2012.
In the UK, each individual is entitled to pass on £325,000 worth of assets before they are charged IHT. After this threshold or ‘nil rate band’ is exceeded, that individual will incur IHT at a rate of 40 per cent.
However, if a person leaves at least ten per cent of their estate to a charity, that individual will incur IHT at a significantly reduced rate of 36 per cent.
It is thought that these rules have led to a surge in the number of people making charitable donations.
There are numerous ways of mitigating your IHT liability. A specialist solicitor can help you to determine which options might be best for you, and implement the necessary provisions in your Will where necessary.
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