LEAVING IT ALL TO CHARITY?

19/03/2010

Ever been tempted to leave all your money to charity after you die but didn’t think you could?  The law in England allows you to leave your estate exactly how you want.  But you need to take care how you go about it.

It’s thought that 75% of us will donate to a charity during our lifetime, but only 5% will leave a gift to charity in our Wills.  Charities rely heavily on gifts left to them through people’s Wills.  In fact, many of the smaller charities in the UK would simply not exist were it not for people’s generosity when they die.

What are the advantages?  Gifts to charity by Will are usually exempt from inheritance tax.  If your estate is subject to inheritance tax the taxman generously pays £4 of every £10 you give. However, there’s still less for others. The other advantage is that you ensure your favourite charity benefits after you die.

But are there any disadvantages?  You need to be careful when leaving money to charity that there will be enough for those who survive you.  Always think carefully about whether or not you have made suitable reasonable provision for your family’s maintenance.  If you haven’t, they could make a claim against your estate.

The recent case of the RSPCA v Gill highlights this.  Dr Christine Gill’s parents left their entire estate to the RSPCA.  Dr Gill expected to inherit the family farm worth £2 million as she was their only child and claimed her mother had promised it to her.  She had helped out on the farm for years and cared for her mother following her father’s death.  After a three year legal battle, Dr Gill will now inherit the farm although the RSPCA have lodged an appeal

Heather Kirk, a Solicitor with Rothera Dowson, comments: “The case between the RSPCA and Dr Gill shows the importance of obtaining legal advice when it comes to making a Will, and also being careful not to say: “One day all this will be yours!”  If you are thinking about leaving your estate to charity at the expense of a family member then make sure your reasons are recorded in detail.  This will help ensure your wishes are followed when you die.”

For advice on making a Will or leaving your estate to charity, contact Heather Kirk at Rothera Dowson on 0800 124 4012.