Charitable giving is a popular way to leave a legacy and make a difference in the world. In England and Wales, there are a number of ways to give to charity through your estate plan. One way is to leave a gift in your will. This is a simple and effective way to support your favourite charities. You can leave a specific amount of money or a percentage of your estate. You can also leave specific assets, such as property or shares.
Another way to give to charity through your estate plan is to create a charitable trust. A charitable trust is a legal entity that is set up to support a particular charitable purpose. You can be the trustee of the trust, or you can appoint someone else to be the trustee. You can also specify how the trust should be managed and how the funds should be used.
Charitable giving can also be used to fund specific projects or programs. For example, you could donate money to build a new school or to provide scholarships for students. You could also donate money to support research into a particular disease or to provide relief to victims of a natural disaster.
There are a number of tax benefits associated with charitable giving. If you leave a gift to charity in your will, you do not pay any inheritance tax on the value of the gift. Furthermore, if you leave more than 10% of the taxable value of your estate to charity, the amount of inheritance tax you pay is reduced from 40% to 36%
If you create a charitable trust, you can also claim income tax and capital gains tax exemptions for the trust's income and gains. You can also claim an income tax deduction for the amount of money you spend on managing the trust.
If you are considering leaving a gift to charity through your estate plan, it is important to speak to a lawyer to discuss your options. A lawyer can help you create a plan that meets your needs and maximizes the tax benefits available to you.
Here are some of the benefits of charitable giving through your estate plan:
You can make a difference in the world and leave a legacy of giving.
You can enjoy tax benefits, such as income tax deductions and capital gains tax exemptions.
You can support your favourite charities and causes.
You can ensure that your assets are used for the purposes you care about.
You can simplify your estate planning process.
If you are considering leaving a gift to charity through your estate plan, it is important to speak to us at Alvechurch Legal to discuss your options. Call us today on 01384 848286 or email Laura@alvechurchlegal.co.uk