Recent data shows that charitable legacy giving is becoming a significant part of estate planning in the UK. According to the Remember A Charity 2025 public report: Nearly one in three (31%) people who have written a Will have included a charitable gift. Legacy gifts—whether a fixed amount, a specific item, or a share of your residuary estate—not only enable you to make a meaningful contribution to causes you care about, but also provide a financial advantage, as gifts to UK-registered charities are generally exempt from Inheritance Tax.
Types of Charitable Gifts
There are several ways to leave a gift to charity in your Will:
- Pecuniary Gift
A fixed sum of money given to a named charity.
- Specific Gift
A particular item, such as property, jewellery, or shares.
- Residuary Gift
A percentage or the remainder of your estate after all other gifts and expenses have been settled
There are several ways to structure a charitable gift in your Will. Some people choose to leave a fixed financial amount, others prefer to donate a specific asset such as property, jewellery, or shares and many opt to leave a percentage of whatever remains in their estate after all other obligations have been fulfilled.
Each type of gift offers its own advantages and can be combined to reflect your personal wishes
Ensuring Clarity in Your Will
To avoid any confusion or disputes, it is essential to clearly identify the charity by including its:
- Full name
- Registered address
- Charity registration number
You should also consider including a successor or similar charity clause to ensure that your gift can still be applied if the chosen charity no longer exists or its purpose becomes impossible to fulfil.
Tax Advantages of Charitable Giving
Gifts left to UK-registered charities are free from Inheritance Tax (IHT).
In addition, if you leave 10% or more of your net estate to charity, the IHT rate on the rest of your estate may be reduced from 40% to 36%.
However, the rules around the 10% test can be quite technical, and it may apply to different parts of your estate separately. To make sure you receive the full tax benefit, it’s important that your Will is drafted correctly and clearly.
Legal Requirements for a Valid Will
Under the UK Wills Act 1837, a valid Will must:
- Be in writing
- Be signed by the testator
- Be witnessed by two independent witnesses who are not beneficiaries (nor their spouse or civil partner)
If your circumstances change, you may need to update your Will by either creating a new one or executing a valid codicil.
Best Practices When Planning Charitable Gifts
- Be clear about your intentions
- Maintain accurate records of your assets and chosen charities
- Assign trustworthy executors—family, friends, or professionals
- Seek legal advice to ensure your Will is compliant and tax-efficient
- Use an optional variance tool if beneficial for estate planning
A Meaningful Legacy
Leaving a gift to charity allows you to support causes and organizations you care about, while at the same time potentially reducing the Inheritance Tax burden on your estate.
If you need help drafting or reviewing your Will, or want guidance on charitable giving, seeking professional legal advice is always a wise first step.
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