For many people, writing a will is all about making sure which of their loved ones gets what, but it is not always quite that simple.
In many cases, a good cause is just as precious as their nearest and dearest and often in greater need of the money that could be sent their way. This may be particularly true if your family already has plenty of money.
Another reason for considering charitable giving may be a situation in which you don’t have a lot of family to start with, or may not be on good terms with them. Ultimately, by writing a will you ensure you have control over where your money and other assets are going.
There are different ways to achieve this through a will. One way is to state a specific amount that you want to give to your chosen charity. That way they get exactly the amount you intend.
A second way is through residual gifting. In this situation you set out how much goes to each of your beneficiaries, with the provision that anything left over can go to the charity. This may be a very efficient solution to a situation where your assets may rise in value but the amount you want to give to specific beneficiaries is fixed.
Thirdly, you could make it a contingent gift. This involves a clause where money will go to charity if circumstances prevent it going to a named party in the will, for example if they have died before you do.
Finally, it is worth noting that leaving money to a charity can reduce the tax burden on your estate. Charitable giving is not taxed, so you can reduce the amount left below the inheritance tax threshold.
You may not have to do this on the scale of the Samsung family in South Korea, where the relatives of the late Lee Kun-hee have been busy donating art treasures to museums to cut their still huge tax bill. But such a measure will make a difference to the liability, as well as ensuring the benefits go to a cause you cherish.
If you are looking for will writers in Colchester, contact us today.