Is there a charity that has supported your family, helped your community or worked on a cause close to your heart?
Leaving a gift to charity in your Will in Scotland allows you to continue supporting a cause close to your heart after your death. You might want to remember a local organisation, contribute to medical research or help a charity you have supported throughout your life.
If you are making or updating a Will in Scotland, it is worth considering how a charitable gift fits alongside your plans for family and other beneficiaries. Clear wording helps ensure your executor understands your wishes and the right organisation receives your gift.
Leaving a gift to charity in your Will: what are your options?
There are several ways to include a charitable gift, sometimes called a charitable legacy. The most suitable option depends on your circumstances and what you want to leave.
A fixed sum of money
You can leave a specified amount, such as £500 or £2,000. This is often called a pecuniary legacy. A fixed sum makes the intended amount clear. However, its value may change over time as prices rise or your financial circumstances change, so it is sensible to review it periodically.
A share of what remains
You can leave a percentage of the estate remaining after debts, expenses, tax and other gifts have been dealt with. This is called a residuary legacy.
For example, you might choose to leave a percentage of the residue to a charity and divide the balance between other beneficiaries. The amount the charity receives will depend on what is available when your estate is administered.
A particular item
You can also leave a specific possession or asset to a charity. This might be jewellery, artwork or another item the organisation can use or sell. Discuss the proposed gift with your solicitor and, where appropriate, the charity. This can help establish whether the organisation can accept it and whether any special arrangements are needed.
What details should you include when leaving a gift to charity?
Your Will should identify the intended charity clearly. Organisations can have similar names, and a familiar fundraising name may differ from the charity’s registered name.
Useful details include:
- The charity’s full registered name.
- Its registered charity number.
- Its address.
Check these details directly with the charity. Its legacy team may also provide information for your solicitor.
If you want the gift used for a particular project or location, discuss this before finalising your Will. A tightly restricted gift may be difficult for a charity to use if its services or circumstances change. CHAS, for example, encourages supporters to discuss specific wishes so it can explain whether they can be fulfilled.
Can you provide for loved ones and leave a charitable gift?
Leaving a gift to charity in your Will can form one part of your wider estate planning, alongside providing for family and other beneficiaries. You do not have to leave your whole estate to charity, and the amount should reflect your own priorities and circumstances. Your solicitor can help you consider how the proposed gift sits alongside provision for your family, other beneficiaries and the costs of administering your estate.
Scottish succession law also needs to be considered. A surviving spouse or civil partner and children may have legal rights to a share of your moveable estate, even where your Will says otherwise. These rights can affect what is available for distribution under your Will.
Does leaving money to charity affect Inheritance Tax?
Gifts to qualifying charities are generally exempt from Inheritance Tax. Charitable giving can also affect the tax payable on other parts of an estate. A reduced rate of 36%, rather than the standard 40%, may apply where the statutory charitable giving conditions are met.
The calculation involves a defined “baseline amount”. It should not be assumed that leaving 10% of the headline value of everything you own will automatically produce the intended tax result. Your solicitor can help you obtain advice on how the rules apply to your estate and proposed gift.
Can you add a charitable gift to an existing Will?
If you are considering leaving a gift to charity in your Will, your solicitor can advise whether to prepare a new Will or use a codicil, a separate legal document that amends an existing Will. Avoid making handwritten changes to your signed Will yourself. Changes need to be prepared and completed correctly, and a new Will may be clearer where several provisions need updating.
Speak to Kaur Sutherland about making a Will in Scotland
Leaving a gift to charity in your Will can help support a cause that matters to you. Whether you choose a modest sum or a share of your estate, our Estates team can help you record your wishes clearly.
At Kaur Sutherland, we help clients across Scotland prepare and update Wills that reflect their circumstances and wishes. If you are considering leaving a gift to charity in your Will, speak to our Estates team about including it as part of your plans.
Call 0141 611 6000 or email info@mackaur.co.uk to discuss making or updating your Will.
