INHERITANCE TAX AND CHARITABLE GIVING
If you leave everything to your spouse or civil partner there will be no inheritance tax on your estate. The same applies if you leave everything to a charity.
If you don’t want to leave everything to a charity and instead want to make the charity a gift of cash, or a part of your estate, then no inheritance tax is payable on the relevant amount. And you may qualify to pay inheritance tax at a reduced rate of 36% if you leave at least 10% of your net estate to charity.
There are bound to be charities which support causes close to your heart, so it is always worthwhile considering a possible charitable gift when preparing your will.
Executors who are dealing with an estate in which charitable giving is a feature are well advised to seek professional advice in dealing with the estate. This is particularly the case where a charity is entitled to the whole or part of the residuary estate. A charity will want to make sure that it gets absolutely the full amount to which it is entitled and some lay executors have had a very hard time at the hands of a charity with the resources to check on exactly what the executor has done. At Probaters we do everything to ensure the administration is carried out strictly in accordance with the terms of the will or the laws of intestacy. The final estate accounts produced at the end of the administration will therefore withstand the scrutiny of the most scrupulous and aggressive charity.