The tax advantages of donating to charity in your Will
Pavilion Row is a supporter of ‘Remember a Charity’.
This week is ‘Remember a Charity Week’ which seeks to bring awareness about the importance of charitable gifts in Wills.
Did you know that whilst 50% of people give to charity in their lifetime only 7% leave anything in their Will?
But it is worth remembering IHT is reduced from 40% to 36% for people who leave at least 10% of their net taxable estate to charity.
This means if you plan to give 4% of your net taxable estate to charity you can increase the gift to 10% without reducing the amount of inheritance the other beneficiaries receive. The tax man pays the difference! See example below:
Example 1
Charity receives: £4,000
Other beneficiaries receive tax free allowance £325,00 plus remainder: £382,600
Example 2
Charity receives: £10,000
Other beneficiaries receive tax free allowance £325,00 plus remainder: £382,60
It’s a fantastic way of maximising the amount you leave behind for charity.
#RememberACharityWeek
