Charitable gifting in wills of over £1m rose by 33% in past year
TWM Solicitors believes that this rise in money given to charities through wills has been driven in part by people looking to reduce the estates’ inheritance tax liability
The value of gifts over £1m made to charity in wills has risen by 33% to £1.1bn from £850m in the last year, according to family law firm TWM Solicitors.
According to TWM, charitable donations worth more than £1m also represented 54% of the total £2.1bn that was left to charity in wills last year.
The firm believes that this rise in money given to charities through wills has been driven in part by people looking to reduce the estates’ inheritance tax liability, as gifts to UK charities are exempt.
In addition, people who leave more than 10% of their total value of their estates to charity benefit from a lower inheritance tax rate of 36% applied to the remainder of their estates, compared to the standard 40% tax charge.
That said, people are still making these donations for philanthropic reasons, as individuals look to make contributions to causes that are dear to them.
Laura Walkley, deputy head of private client at TWM Solicitors, said: “There are many high earners or high net worth individuals who either have no children, or have children and wider families who are already financially self-sufficient. Instead of (or as well as) passing all of their wealth to their relatives, those people choose to leave money to causes that are close to their hearts.”
“We have seen a wide variety of charities benefitting from these large gifts, from major national organisations like the RSPCA to small local charities.”
She added: “The rules about gifting to charities in a will can be complicated, and it is important that wills are drafted correctly in order for the full benefit to be available. Simple errors can end up with the intended tax benefit not being achieved.”
