Lucinda Frostick
New research reveals that 6 in 10 professional advisers are reporting an increase in demand for advice on estate or inheritance planning since the Inheritance Tax (IHT) changes were announced in last year’s Autumn Statement. What’s more, almost two thirds think that the fiscal incentives on charitable giving will become even more important to their client base as they seek to mitigate rising IHT liabilities. [1]
Certainly, with IHT thresholds frozen until 2030 and pension wealth being drawn into the IHT net from April 2027, many more estates are likely to face a tax bill in future. In fact, predictions from the Office for Budget Responsibility suggest that taxable estates will almost double – rising from 5.2% in 2023/24 to 9.5% by 2030. [2]
The shifting fiscal landscape, together with the public’s increased appetite for legacy giving over the years, makes this a timely opportunity for advisers to discuss charitable giving with clients during estate planning. But how can you incorporate the topic as a natural part of the Will-writing process?
Here, we share three top ways that can help you get the legacy giving conversation started:
1. Normalise the option of charitable giving
“Many of our clients choose to leave a gift to their favourite charity alongside their loved ones. Is this something you’d like to explore?”
Presenting the charitable option in this simple and neutral way removes any sense of expectation. This approach opens the door respectfully, normalising giving and empowering your client to identify causes that they have a personal connection to. And, Remember A Charity’s research in partnership with the Cabinet Office Behavioural Insights Team and Co-op Legal Services tells us that clients are up to three times as likely to remember their favourite charity in their Will if it’s raised in a way that normalises the act. [3]
2. Use the IHT incentive as an entry point for charitable giving
“Including a charitable gift in your Will could reduce your Inheritance Tax liability. Would you like to understand more about how that could work?”
In the UK, charitable donations are exempt from Inheritance Tax (IHT), and if clients leave 10% or more of their estate to charity, the IHT rate is reduced from 40% to 36%. Highlighting these tax benefits can be a practical and effective way to introduce the topic of charitable giving in estate planning conversations.
While tax savings are rarely the main reason people choose to leave a gift to charity, for Will drafters, focusing on these incentives offers a natural way to explain options for tax-efficient giving. In fact, Remember A Charity’s annual professional adviser tracking study shows that tax incentives are the primary reason solicitors, Will-writers and financial advisers cite for raising the topic with clients.
3. A personal approach
“I know you’ve spoken about your [love of music/art/sport OR involvement with a charity as a trustee/volunteer]. Would you be interested supporting this cause/charity from your estate?”
A conversation that relates to clients’ personal interests and life story is not only authentic, but a great opportunity to deepen rapport. For many clients, legacy giving is their chance to make a lasting impact. Framing legacy giving as a continuation of lifetime values can resonate both emotionally and ethically. This is particularly powerful for those with longstanding ties to good causes, as there is a strong correlation between existing charity relationships and the likelihood of leaving a charitable legacy.[4]
Raising the topic of legacy giving may feel like a small step, but offering the opportunity to connect estate plans with clients’ charitable passions and purpose is a service that’s greatly valued. Such conversations have the power to strengthen client relationships, while helping them carry their story forward for future generations.
Further resources and guidance to help open up the conversation with clients are available through Remember A Charity’s free Campaign Supporter scheme. Find out more at rememberacharity.org.uk/advisers.
[1] Remember A Charity Professional Adviser Benchmarking, Savanta, 2024
[2] Office for Budget Responsibility, 2024
[3] Cabinet Office Behavioural Insights Team, Remember A Charity, Co-op Legal Services, 2013
[4] Remember A Charity Consumer Benchmarking Research, OKO, 2024
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