The Benefits Of Leaving Money To Charity
If you're in the process of writing a will then you may consider leaving money to charity. There are many benefits to giving to charity in your will and here we'll take a look at all of them. Hopefully by the end, you'll have a clear idea of whether leaving a charitable gift is right for you.
Cutting your inheritance tax bill
There is no tax to pay on charitable donations and 100% of the money you donate will go to the charity. Also, any money that you give away will be taken off your estate before any tax is calculated, giving you a further benefit. On top of that, if you gift 10% or more of your estate then that will reduce the overall inheritance tax amount from 40% to 36%
Give anything you want
Money isn’t the only thing that you can give to charity. You could gift a vehicle for patient transport, books to a hospice or anything else you can think of. This means you can be more creative and gift something more unique than just money.
There are many different types of assets but when people think of an estate, the first things that come to mind are cash and property. The likes of equipment, shares, furniture and artwork are all examples of assets that could have significant value. Anything that you gift to charity wouldn’t need to be valued for the purpose of your estate and therefore wouldn’t counted for tax purposes.
The idea of leaving something lasting behind can be warming for many. A large donation can give your name a long-lasting legacy that will carry on long after you’re gone. You can even talk with a charity before you pass away to work out what can be done with the money.
This could be something such as developing a new property, creating a memorial garden or even a playground for children. Putting your name to a project can give your money a focus rather than simply being placed into a charity’s overall funds.
Peace of mind
It’s a sad thought but many people pass away wishing that they could have done more with their life. A charitable donation can give someone peace of mind that they are able to do one last great thing before they die.
It can also give you comfort that you know good things are going to happen with your money. There are many brilliant charities out there that help countless people. That feeling of doing the right thing can help people pass away peacefully.
Paying it back
You may wish to pay back a charity’s help towards you with a gift. An example of this would be donating to a hospice that helped to care for you. It could also be something else such as a foster home that cared for you as a child.
If you've ever been helped by a charity then you may wish to repay the favor. This can be great as it'll put a smile on your face that someone else is going to be helped in the same way that you were. Many people have charities that are close to their hearts.
If you’re going to pass away from a specific illness then you may wish to donate a cause that aims to defeat it. It’s common for those with cancer to leave something to a charity that aims to research and find a cure for it.
Of course, there are thousands more illnesses out there are and rare conditions often don’t have the same level of funding available. Your parting gift could end up being a huge help in ensuring that others don’t suffer the same fate.
Should you give to charity?
There is one obvious downside to giving to charity and that is your family receiving a lower amount. You should follow your heart and your family is almost certain to support your decision to give part of your estate away to a worthy cause.
Your family may also be financially comfortable and have little need for inheritance. Whatever decision you make, simply ensure that it’s what you want and you’re not being pressured from anyone else. You can’t blame anyone for putting their family first and you can’t blame them either for wishing to help a charity.
How to give to charity
All you need to do is put it into your will or register them as a beneficiary of your life insurance policy. If you have any specific wishes, then talk to the charity and discuss what they will do with your donation. Whatever you want, make sure that it is specifically noted and there is no ambiguity.
You also don’t want there to be any errors. Many charities have a similar name and therefore mention their registered charity number, along with their name. Once it is in your will, then it’ll all be handled by your executor once you pass away.
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