Let’s be honest – inheritance tax (IHT) isn’t exactly anyone’s favourite subject.

In fact, it’s almost universally unpopular.

Yet, IHT is a key tool for the government, raising a staggering £7.9 billion last year alone – even though only 4% of estates actually paid it.

That’s a hefty plug in the national finances, and it’s not likely to disappear any time soon.

But here’s the good news: there’s a powerful, positive way to reduce your IHT bill and make a real difference in the world.

The answer?

Leaving a gift to charity in your will. 💡

Why Leave Money to Charity in Your Will? ❤️

Leaving money to charity isn’t just a generous gesture – it’s a smart financial move. Here’s why:

1. It’s Tax-Free for Charities 🏥🐾🌳

Any money you leave to a registered charity in your will is completely exempt from inheritance tax.
That means every penny goes straight to the cause you care about, whether it’s a local animal shelter, a health charity, or a conservation project.

2. It Reduces the Value of Your Estate for IHT Purposes 💷⬇️

When you leave money to charity, that amount is taken off the value of your estate before inheritance tax is calculated.
This could be the crucial difference between your loved ones paying IHT or staying under the threshold.

Example:
If your estate is worth £350,000 and you leave £25,000 to charity, only £325,000 is considered for IHT.
That could mean no tax is due at all, depending on your allowances!

3. Give 10% or More and Pay a Lower IHT Rate! 🎉

Here’s a little-known bonus: if you leave at least 10% of your “net estate” to charity, the inheritance tax rate on the rest of your estate drops from 40% to 36%.
That’s a significant saving for your beneficiaries – and a fantastic boost for your chosen charities.

Giving: An Age-Old Tradition with Modern Impact ✨

The idea of giving a portion of your wealth to support good causes is nothing new.
In fact, it stretches back thousands of years.
The practice of “tithing” – giving one-tenth (10%) of your income or produce – originated in biblical times as a way to support religious communities and help the vulnerable.
This 10% figure was seen as a fair balance: enough to make a real difference, but still leaving the donor with the majority of their resources.

Over time, the principle of tithing influenced not just religious giving, but also the way societies structured taxes and community support.
Even today, the spirit of tithing lives on whenever someone chooses to leave a meaningful gift to charity – whether that’s a portion of an estate or a specific legacy in a will.

So, when you consider leaving a gift to charity in your will, you’re not just making a financial decision.
You’re joining a long and proud tradition of generosity that has shaped societies for generations.

The Feel-Good Factor 🌟

Of course, the financial benefits are just one side of the story.
Charitable gifts in wills raise over £4 billion a year for UK charities, supporting vital work in communities everywhere.
Many people find great comfort in knowing their legacy will live on, helping others long after they’re gone.

How to Include Charity in Your Will 📝

It’s simple to add a charity to your will – whether you’re writing a new one or updating an existing will. Here’s what to consider:

• Choose your charity:
  Pick a cause close to your heart.
• Decide on the type of gift:
  This could be a fixed sum, a percentage of your estate, or a specific asset.
• Get the details right:
  Use the charity’s full name and registered number to avoid confusion.
• Review regularly:
  Life changes, and so might your wishes. Review your will every few years.

Final Thoughts: Make a Difference, Reduce the Taxman’s Cut! 🥳

Inheritance tax may be here to stay, but you have real power to decide where your legacy goes.
By leaving a gift to charity, you can support causes you love, reduce your estate’s tax bill, and leave a lasting impact.

If you’d like to talk through your options, get in touch – we’re proud to be part of the Remember A Charity movement and can guide you every step of the way.

Ready to make a difference?

Book a FREE consultation with one of our Beacons with this link –

Contact / About Us – Beacon Advice

Additional Resources

For more detailed information on Inheritance Tax, thresholds, and exemptions, visit the official government guide:
gov.uk/inheritance-tax