Legacy Foresight predicts the average annual income from charitable gifts in Wills in the UK will rise by 26% over the next five years. Which would increase to an average of 134,000 – 137,000 bequests per year.
The 2021 Census statistics revealed the greatest number of people in the UK are now in the 65+ age bracket than ever before. This age group now accounts for 18.6% of the UK population, compared with 16.4% a decade ago.
A person would usually wish to leave their estate to the next generation to ensure that their next-of-kin is provided for. However, longer life expectancy has a knock-on effect to the age at which people inherit from their parents. The population is living longer which means that families themselves have also aged or may be in later stages of life and don’t actually need to inherit from their parents. This means that more elderly people are increasingly likely to choose to include a charitable gift within their Will instead.
A recent consumer benchmarking survey conducted by Remember A Charity, found that 19% of people said they had included a charity in their Will, and a further 10% were preparing to do so. They found less than one in ten donors (9%) rejected the concept altogether.
Almost half (48%) of those who have included a charitable gift in their Will do not let the charities know. The main reason given by donors is that they can’t see how it would benefit the charity to know, while others say it’s because they might change their mind. Leaving a gift in your Will to Charity can have a big impact allowing the Charity to continue its important work.
Gifts to charities left in a will attract 100% relief from inheritance tax or can reduce the rate at which inheritance tax is charged. Therefore, taking the appropriate legal advice could help to reduce the inheritance tax payable on your death.
How can Tozers help?
If you need any advice on preparing a Will or Inheritance Tax planning, please contact our specialist wealth management team, who will be happy to help.
