Bequesting A Gift

Leaving a gift in your will can be a very tax-efficient way of providing charities with support.

Leaving a gift in your Will

  Bewdley Festival Limited strongly advises that you take professional advice when drawing up your Will.

  If you die without a Will, the law uses a standard formula to determine who inherits your estate, and this might not be what you would wish.

  If you already have a Will, it is simple and quick to add an additional provision – called a codicil – that can be to the benefit of the Bewdley Festival Limited

Is there a difference between a gift in a Will and a legacy?

  No there’s absolutely no difference – These are just different terms for the same thing.

You could also consider the following types of gift:

  • A gift of a fixed sum of money. The value of pecuniary legacies will decrease over time, as the cost of living increases.
  • A particular named item left as a gift in your Will is known as a specific legacy, for example, a piece of jewellery.
  • Legacies made on the basis of another event happening first are called contingent gifts. For example your Will could state that a gift only applies if all other beneficiaries named in your Will die before you do.
  • A reversionary legacy is a gift which someone can benefit from in their lifetime. For instance, your house could be left for the use of a relative. When they die it could pass to someone else, or to a charity.

Suggested wording for a pecuniary legacy (a specific sum of moneys)

   I give the sum of […] pounds to the Bewdley Festival Limited (Registered Charity Number No 701629) of St. George’s Hall Bewdley, Worcs DY12 2YE  for its general charitable purposes and I express the wish that the gift is used for the benefit of the Bewdley Community Arts   Foundation and I declare that the receipt of the Treasurer or other proper officer for the time being of the Bewdley Festival Limited shall be a complete discharge to my executors.

Suggested wording for a residuary gift (a share of your estate)

I give […] percent of the residue of all my real and personal estate to the Bewdley Festival Limited (Registered Charity Number No 701629) of St. George’s  Hall, Bewdley, Worcs DY12 2EQ for its general charitable purposes and I express the wish that the gift is used for the benefit of the Bewdley Community Arts Foundation and I declare that the receipt of the Treasurer or other proper officer for the time being of the Bewdley Festival Limited shall be a complete discharge to my executors

What are the financial benefits of leaving a gift in my Will?

  Inheritance tax is paid if the value of your estate exceeds the threshold set by the government. Inheritance tax of 40% is paid on the amount that exceeds this threshold. So, out of every £1 over the threshold your beneficiaries will only keep 60p, and 40p will go to the government. However, gifts to charities are generally exempt from Inheritance Tax. So, if you leave a charitable gift it will be deducted from your estate before Inheritance Tax liability is calculated.

  Furthermore, if your estate is subject to inheritance tax then you can reduce the rate of tax from 40% down to 36% if you leave 10%, or more, of your estate to Charity.

  If you would like more information, please visit the HMRC website or speak to your Solicitor.