Legacy Giving and Inheritance Tax Relief

 
 

The Power of Legacy Giving

Legacy giving is a noble way to support causes close to your heart and make a significant impact on society.

This deliberate and thoughtful decision is typically included in your Will, ensuring that your values and passions continue to make a difference even after you are gone.

Beyond the emotional rewards, it can also be a shrewd financial move to reduce or eliminate your inheritance tax liability.

what is inheritance tax?

Inheritance tax is a tax imposed on the estate (property, money, and possessions) of a deceased person. To put it simply, inheritance tax is typically payable when the total estate value exceeds the current threshold (£325,000 as of the last update). Beyond this threshold, your estate may be subject to a hefty tax bill, often at a rate of 40%.

[See our inheritance tax guide for the full breakdown of rules]

how does legacy giving impact inheritance tax?

By including charitable donations in your Will, you can lower your taxable estate's overall value. The UK government encourages philanthropy by offering various tax incentives, including:

  • Reduced Inheritance Tax Rate: If you leave at least 10% of your estate to a charitable cause, your inheritance tax rate drops from 40% to 36%.

  • Exemptions: Gifts to registered charities are entirely exempt from inheritance tax, reducing your estate's taxable value.

  • Lifetime Gifts: You can also benefit from reduced inheritance taxrates on lifetime gifts made to charities, further lowering your tax liability.

crafting your charitable legacy

Selecting which charities to support is a personal and fulfilling process. Our financial advisors can help you identify causes aligned with your values and goals if needed.

maximising tax efficiency

Our team specialises in optimising your financial strategy to maximise tax benefits while fulfilling your overall financial and philanthropic goals. We help to ensure your generosity has the greatest impact on both your legacy and your family's financial future.

Getting Started

To make the most of legacy giving in your estate planning, it's essential to consult with experienced, independent financial professionals. At Harold Stephens, we are here to guide you through the process, answer your questions, and help you achieve your goals with our bespoke advice.

We get to know you, your loved ones and what you really want to ccomplish. Everything we do is in your best interests, and we love to offer an old-fashioned face-to-face service wherever possible.

contact us today

Charitable giving via Wills is a win-win strategy: it allows you to make a difference in causes you care about while potentially reducing your inheritance tax liability. Start planning your charitable legacy today with the help of our experts. Together, we can ensure your wealth serves a greater purpose while securing your family's financial future.

Contact us today for a relaxed, no obligation chat about your circumstances.