Frequently asked questions - gifts in Wills

Charities rely on gifts in Wills to continue their vital work for future generations.

Gifts in Wills fund more than half of Marie Curie hospices, one in six children in NSPCC care, a third of Cancer Research UK’s research and six out of every ten RNLI lifeboat launches.

No, it's a common myth that you have to leave a large amount of money to charity in your Will. In fact, even a small donation can make a huge difference to the causes you care about. 

No, family and friends always come first. But if, after taking care of them, you have even a small amount left, a gift to charity in your Will could make all the difference to good causes that you care about. 

No, gifts left to charity in your Will are tax-free. 

Capital gains tax is a type of tax that is usually payable if you sell or give away something that has increased in value during the time that you have owned it. The increase in value is what is taxable.

There is no capital gains tax payable on death. Any gains or losses that you have incurred are wiped clean and a new base cost of the date of death value inserted. Any gains between the date of death and the sale of assets within the estate may incur capital gains tax. There are ways that we can help you reduce or even wipe out the liability using mechanisms such as deeds of variation and deeds of appropriation.

Charities are exempt from capital gains tax, so when a gift is left to charity in your Will, any gifts to the charity will be exempt from tax. In addition, if your gifts to charity amount to 10% of the estate, it may be possible to use this exemption to benefit your whole estate as the whole estate would then pay a reduced rate of inheritance tax of 36% rather than 40%. This is something you should discuss with a professional adviser when it comes to writing your Will.

See the government guidance on capital gains tax for more information.

If you leave 10% or more of your net estate* to charity in your Will then the overall amount of inheritance tax you have to pay will reduce from 40% to 36%.

To find out more, and other ways gifting can reduce inheritance tax, read our guide. 

* The net value is the estate’s total value minus any debts. Visit gov.uk for more information.

Updating your Will to include a charity is easy - read our guide on how to change your Will for instructions. 

No, it's completely up to you if you tell them or not. Many people prefer not to tell their chosen charities that they've left them a gift in their Will. 

If, however, you are comfortable with telling your chosen charity or charities, then it will help them to plan future activities more effectively.

Yes, you can leave gifts to more than one charity. In fact, it is common for people to leave a gift to three different charities in their Will.

It is completely up to you!

There are over 160,000 registered charities in the UK, ranging from the large and well-known ones, to smaller local or community-based charities.

You may not realise that some organisations are charities, such as museums, hospices and universities.

If you don’t already have a favourite charity or cause, think about what's important to you. Perhaps you or someone you care about has been supported by a charity, or you feel very strongly about a particular cause.

No, there are three different types of gift you can leave to charity:

• Pecuniary gifts: a set amount of money
• Residuary gifts: a percentage, or the whole, of your estate (what’s left after other specified gifts, costs, and tax)
• Specific gifts: a specific object, asset or property

You will be able to discuss this with a professional advisor to make it clear exactly what you want to leave.

Yes, but it is best to discuss this with the charity first. It's not always possible for a charity to use a gift in the way you want, which could mean that they might not be able to accept the gift.

No problem, just get in touch with our friendly team and we'll do our best to answer any questions you have about leaving a gift to charity.

Did you know that more than 90% of the amount donated to UK charities from people’s Wills comes from percentage or residual gifts rather than donations of a fixed amount?  

Find out why you might choose to consider leaving a gift as a percentage of your estate.