According to recent research commissioned by Remember a Charity and conducted by Savanta, 50 per cent of high-net-worth (HNW) individuals have included a charitable gift in their Will.
The research, which included a survey of 500 people with over £1million in investable assets, highlighted a growing keenness from HNW individuals to include charitable gifts as part of their estate planning.
Leaving gifts to charity is your legacy, helping others, and allowing charities to continue the amazing work they do to support local communities.
The survey also highlighted the importance of HNW individuals putting a Will in place.
What did the survey reveal about charitable gift donations?
Remember a Charity’s survey highlighted that half of the individuals surveyed have included a charitable gift, while 75 per cent of individuals with over £5 million in investable assets have placed a charitable gift in their Will.
Not all HNW individuals have included a charitable gift, but 58 per cent are open to leaving a charitable gift in their estate, which would mean updating their Will to reflect their choices.
In addition to this, the survey revealed 26 per cent of HNW individuals are leaving a percentage of their estate to charity. As many as 40 per cent are willing to do the same because of the tax benefits involved.
Charitable donations are tax-free with Inheritance Tax (IHT) perks in place. Should you decide to leave ten per cent or more of the net value of your estate to charity, the IHT rate reduces from 40 per cent to 36 per cent.
The survey highlights concerning Will figures
As well as highlighting some of the figures behind donating charitable gifts, the survey also addressed Wills and how many HNW individuals have a Will in place.
Of those surveyed, 35 per cent of individuals aged 55 to 65 said they don’t currently have a Will.
That means that more than a third do not have officially documented plans for how they want their estate to be distributed.
Unless they prepare a Will whilst they are alive and well, their estate will be subject to the rules of intestacy.
There was slightly better news with 31 per cent confirming they have an updated Will, while 25 per cent are currently in the process of updating their Will.
You should be updating your Will to reflect changes in your life, such as family circumstances, as well as any Government announcements that could affect your estate.
How do I leave a charitable gift?
Leaving a gift to charity in your Will is very easy and simple to do. What is important is to consider whether you are leaving gifts to just one or multiple charities.
In your Will, you need to state the name of the charity as they will be classed as a beneficiary of your estate.
You will then need to state exactly how much you want to leave to that charity, whether it’s a fixed cash sum, a specific item, or the remaining value of your estate after remaining gifts have been distributed.
It is wise to do your research first before choosing a charity and ensure you pick a UK-registered, trusted charity helping with an issue you are passionate about.
Keen to create or update your Will?
If you’re a high-net-worth individual, you should draft a Will that reflects exactly what you want to happen with your estate and assets.
Given the number of assets you have and their value, it’s wise to protect them upon your death by including them in your Will and bequeathing them to the right beneficiaries, including charities.
Looking to update your Will? Get in touch with our team.