It is common for individuals to leave a legacy to a favoured charity or charities perhaps in recognition of the help provided to a loved one or following life-long support.
Many charities rely on legacies for their continued operation and actively encourage the act of giving. Charities will even prepare Wills free of charge in the hope that a donation or legacy will be included, and often those donations can be quite sizeable including cash, individual assets and even property.
In addition to supporting a good cause, there are advantageous tax reasons to make charitable donations through a Will. They will reduce the amount of inheritance tax (IHT) paid, and if 10% of an estate is given to charity the headline IHT rate drops from 40% to 36%.
But how you give to a charity is important. Charities that are reliant on legacies can be quite aggressive in chasing that legacy adding to the emotional and stressful time for families following the death of a loved one. It is not uncommon for the executors of an estate to find charities breathing down their necks demanding excessive documentation and the cash or assets bequeathed.
How to give
Individuals give to charities via their Wills in two broad ways – a donation of a specific amount or a percentage of the estate.
Where a specific amount is given, the named charity will have to wait in line alongside other beneficiaries for that gift.
However, when a percentage of an estate is given, complications can, and often do, arise.
Here, charities may expect to be consulted on the wider distribution of the estate, on the sale of property, requesting independent valuations of assets, copies of the estate accounts and even details on advice given by estate agents, pension advisers and investment managers. It is not unknown for charities to object to expenses incurred by the executors of the estate.
It is also common for larger charities to appoint independent agents that scan for and review newly probated Wills and then actively chase executors for payment of those legacies.
Executors of estates, often family members with little or no experience, can all too quickly find it overwhelming and need to rely more on the solicitors appointed to manage the probate process. It can mean increased estate administration fees.
The delays in the probate process add further complications, with many charities appearing impatient, a problem that is further compounded where assets are difficult to liquidate.
It has led to several high-profile court cases, with the RSPCA and the Woodland Trust being involved in several court cases. Most people will, quite understandably, believe that charities would be grateful for legacies made in a Will, yet the reality is that some see it as a duty to pursue every single penny that is due to them.
Individuals wishing to make donations to a charity in their Will should do so by giving a specific amount or through a charitable discretionary Will trust. It is also helpful to include the charity registration number, available on the Charity Commission’s website, to ensure donations go where intended.
Contact our Private Client Solicitors
If you are in need of advice or assistance on making donations to charities then please contact Olivia Meekin, Partner or Shelina Vaiya, Associate Solicitor, or any member of our experienced Private Client team on 020 7631 4141 or email privateclient@bishopandsewell.co.uk
The above is accurate as at 20 February 2025. The information above may be subject to change.
The content of this note should not be considered legal advice and each matter should be considered on a case-by-case basis.
