Half of the UK’s wealthiest people have left a charitable gift in their wills, new research has found.
Charitable will trusts and donor advised funds are also being used by one in three millionaires, the research by Remember A Charity found.
The study surveyed 500 people with over £1m in investable assets and found half have already included a charitable gift in their Will, rising to 75% for those with estates of £5m or more.
There are generous tax incentives in the UK for those who leave a charitable gift from their estate – donations are tax-free and if 10% or more of the net value of the estate is donated, this can reduce the estate’s Inheritance Tax rate from 40% to 36%.
“Charitable legacies are hugely valued across the sector, no matter the size of the gift or estate. But these insights into the high value legacy market reveal that legacy giving is even more prevalent in this space than many of us will have anticipated,” said Lucinda Frostick, director of Remember A Charity.
“While this is certainly encouraging for charities, many of which are becoming increasingly reliant on donations from those with wealth, this also helps to reinforce to professional advisers just how relevant philanthropy is to their client base – and how crucial it is that they can support their clients in achieving their charitable legacy.”
