5 Top Tips For Creating A Will
By Naomi Pinder, Solicitor @ Catherine Higgins Law
Make sure that you leave your dependants enough money in your will, so that they have no financial worries.
Condider any other smaller gifts you may like to include in your will to remember friends, perhaps you'd like to leave them a momento or a special ornament that they have always admired.
Then think about all the good causes which are close to your heart, and which you have supported during your lifetime. We all have our special concerns, be they animal welfare, supporting children, health and hospices, alleviation of poverty, overseas aid, advancement of public art and education and supporting faith and well-being. Remember that if you have given your generous support during your lifetime, this income will be lost after you have died, and therefore it is important to consider making provision in your will.
There are 4 main ways of including your charitable legacy;
- You can leave a particular item, for example a painting to an art gallery, but always check first that it will be accepted.
- A gift of money, for example £1,000 to your named charity. You can include a single gift or multiple gifts.
- A gift of your residuary estate or part of your resituary estate. This is your estate that is left after everyone named in your will has been allocated wgar you have specified. For example, you could leave your residuary estate to your named charity to be equally divided between 5 named charities. Or you could specify that your residuary estate is to be divided 50% to your grandchildren and 50% to your named charity.
- A gift in trust, to be distributed between such charities are selected agter you have died by you trustees. You can indicate which type of charities should benefit, for example, charities devoted to the alleviation of poverty in the UK.
Finally, there is an old saying about death and taxes! There are good reasons to include charitable legacies because they are exempt from inheritance tax and will lower the size of your taxable estate. If you leave more than 10% of your net estate to charity and your estate is still over the allowance, the rate of tax is redyced to 36%.
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