Can you leave money to charity in a will?
Gifts to UK-registered charities in a will are completely exempt from inheritance tax. If your estate is over the tax threshold, every pound you leave to charity is a pound the tax bill never sees — so a £10,000 gift can effectively cost your family £6,000 in lost inheritance once the 40% tax saving is counted.
Cash gift or share of the residue?
- A fixed cash gift is simple and certain — but inflation erodes it, so review the figure every few years.
- A percentage of the residue scales with your estate automatically and is often fairer between charity and family — 5% to a cause you love still leaves 95% with the people you love.
How does leaving 10% to charity cut inheritance tax?
Leave at least 10% of your net estate to charity and the inheritance tax rate on the rest drops from 40% to 36%. For larger estates the saving can be substantial — sometimes a bigger gift to charity leaves the family barely worse off at all, because the taxman funds most of the difference.
How should you name a charity in a will?
Charities share similar names, merge, and occasionally close. Always use the full registered name and the registered charity number — both appear on the charity's website and the Charity Commission register. Well-drafted wills also say the gift should take effect for any successor organisation if the named charity has merged, so a reorganisation does not sink your gift.
How do you make a charity gift official?
A charitable gift needs nothing more exotic than a properly signed and witnessed will — see what a will costs for the honest price landscape. You can make your will in about 15 minutes with SwiftWill for a one-time £35, charitable gifts included, with free updates for life. One caveat: if a large gift to charity would leave dependants short, they may have a claim against the estate — that is a conversation to have with a solicitor.