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The Gift of a Lifetime
Legacies are the largest single source of income to UK charities and make a vital difference to good causes across the country. A legacy allows you to make your mark on the world by providing for a good cause that is close to your heart. Free of inheritance tax, a donation made in your will can also help reduce the tax burden on your estate.
How does it work ?
A charitable legacy could be a gift of money or of any other assets that you leave behind. While there are several options to consider, there are two main types of charitable legacies; pecuniary and residuary.
•a pecuniary legacy specifies a sum of money or item of value to be donated
•a residuary legacy allows you to donate a percentage of the net value of your estate or the remaining sum after you have provided for family and friends.
What do you need to do?
To leave a legacy to a charity, you need to include details of the donation in your will. This can be done by either :
•writing a new will - once written, it makes any wills made by that person in the past void. (Most wills will start by reciting that you're making a will and that you're revoking previous wills.)
•making an amendment or ‘codicil’ to an existing will - i.e. to change the value of a gift of money; or to add/change an executer or make a new gift. (This is straight forward but problems can occur if you ever want to cancel the will in the future. When you cancel a will with a codicil, the codicil does not get cancelled automatically, so when you make a new will it can create inconsistencies and legal problems. If you choose to use a codicil be very careful that next time if you make a new will, it clearly states that you are revoking all wills and codicils previously made.)
•setting up a Trust
Your solicitor or professional adviser will be able to tell you more.
For further details contact Celia Washington celia@kathmanduarts.org to find out more about leaving a legacy to Kathmandu Contemporary Arts Centre today.