As we approach the greatest wealth transfer in history, with £327 billion predicted to be passed on from one generation to the next across the UK, astute estate planning has become even more important and the appetite for information and guidance on IHT incentives is on the rise.
In today’s world, UK baby boomers are active and engaged in their communities, they are financially-savvy and, according to Saga’s Generation Experience report, around two thirds of them support charities. Taking care of their family is crucial and – just like most of us – they hope that any inheritance they pass on will be valued and used wisely. In this environment, offering advice on the inheritance tax (IHT) incentives on charitable donations included in their Will takes on even greater significance.
Spreading the good news
For solicitors and Will-writers, opening up conversations about their charitable giving is an opportunity to attract and engage loyal clients. Addressing IHT incentives appeals to those with larger estates, giving clients the chance to make their money work that much harder – for them and for the good causes they support.
What’s more, our research at Remember A Charity shows that, while there is even greater appetite for people to include a charity in their Will in this post pandemic climate, the majority of those aged 40+ remain unaware of the IHT incentives (58%) linked to this form of giving.
Charitable gifts in Wills are of course free of tax. Plus, if at least 10% of the net estate is left to charity, clients can benefit from a discounted IHT rate – reducing the amount of tax paid from 40% to 36%. A residuary gift like this is a generous decision and can make a huge difference to the charities they choose to include in their Will. And figures from HMRC show that giving at this level is not uncommon – almost one in ten estates over the threshold now include a charitable donation of 10% or more.
Still, charitable donations can be pledged at any level, sitting alongside gifts for family members and others, and helping clients ensure their final wishes reflect the same values that mattered so deeply to them in life.
By highlighting the IHT incentives, solicitors and Will-writers have the opportunity to attract and engage clients, developing longer-term relationships. It brings benefit all round; for you, your clients, and of course the charities to whom gifts in Will present a lifeline, enabling them to continue fund crucial services for generations to come. To find out more about our work to support solicitors and Will-writers with free resources on taking about charitable Wills with clients, go online today to read up on our free Campaign Supporter scheme.
 OKO, Legacy Giving Consumer Benchmark Study, 2022
 Kings Court Trust, 2019