The Power of a Gift: Why Charitable Wills are increasing
A study has found that one quarter of all Wills drawn up by Will writers or solicitors now includes a charitable gift. The charity group Remember A Charity commissioned independent researcher Savanta to question those preparing Wills.
Recent surveys show that legal professionals now actively encourage charitable giving. In fact, 73% of advisors mention charitable bequests when drafting Wills. Clearly, this proactive approach is working well. Today, nearly one-quarter of professionally prepared Wills include a gift to charity. Notably, this represents a 16% increase since 2016.
Furthermore, the data shows steady growth each year. Specifically, over a third of professionals always raise this question during consultations. Conversely, less than one-tenth of advisors never mention it.
Interestingly, some professionals still hesitate to bring up the subject. Typically, their main concern is influencing a client’s personal decision. However, the trend toward legacy giving continues to gain significant momentum.
The importance of charitable gifts in Wills
The charitable sector relies heavily on bequests, which are the single largest source of voluntary income for UK charities. Around £3.85 billion is received each year by charities from gifts left in Wills. This allows them to continue the work that they do.
Lucinda Frostick, director at Remember A Charity said: “Once clients have taken care of their family and loved ones in their Will, the option to leave a charitable gift and lasting legacy to positively impact the world after they are gone can be hugely empowering and inspiring. This benchmarking study charts a continual rise in the proportion of Wills made through solicitors and Will-writers that include a charitable gift. These donations may not arrive for some years yet, but they will fund vital services and charities’ core costs for generations to follow.”
Why Will writers and solicitors believe some clients do not leave a gift to charity
The survey reveals barriers to charitable legacies:
- 83% prioritize leaving everything to family.
- 38% struggle to choose a charity.
- 38% fear disputes over charitable gifts.
Estate administration
The survey also explored experiences with charitable gifts during estate administration. Over three-quarters (77%) of firms surveyed, reported handling estates that included charitable bequests. More than half (56%) found these charities easy to work with. However, only 13% encountered any difficulties. For those who did experience challenges (22%), the most common reason cited was excessive communication from the charities.
Leaving a charitable gift in your Will
Firstly, a professional Will writer ensures your charitable gift is correctly documented. Importantly, they include essential details like the charity’s registered number. Furthermore, they help you plan for the future. For instance, they can advise on what happens if a charity closes down.
Financially, any gift left to charity is exempt from Inheritance Tax. Crucially, you can also lower your overall tax rate. If you leave 10% of your net estate to charity, your tax rate drops. Specifically, it reduces from 40% to 36%.
Personal preferences play a large role in your decision. Typically, people choose charities that align with their core beliefs. Alternatively, you may wish to support a cause that helped your family. Ultimately, your Will is a powerful way to remember the work you value most.
If you would like to speak to one of our experts about leaving a gift to charity in your Will call us FREE on 0800 781 6658 or email us at enquiries@estplan.co.uk
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