Giving for a sustainable future: a guide to leaving gifts to charity

Giving for a sustainable future: a guide to leaving gifts to charity

The environment, the next generation, sustainable farming, healthy food... whatever your passions, you can make a lasting difference by leaving a legacy to LEAF.

Farmland rich in biodiversity, a climate-smart future, healthy and affordable food for everyone - LEAF shares your passion for transforming farming and food systems, creating an environment fit for future generations.

This simple guide sets out how you can help to support a sustainable future by leaving a gift to charity.

Make your wishes clear – make a Will We recommend using a solicitor. Before your appointment, jot down what’s important to you, such as: • Making sure your family is well-provided for • Clarifying who inherits (for instance, if you are separated but not divorced or if your unmarried partner has children) • Naming guardians for your children • Leaving your house to your grandchildren • Making sure named people receive specific items of sentimental value • Optimising gifts to charity • Managing Inheritance Tax Make it clear in any new Will that you are revoking all previous Wills and Codicils.

Expect to pay £150 for a simple Will or £500+ for more complex situations.

Look out for free or discounted services for simple Wills during Wills Months.

Useful websites moneysavingexpert.com/family/free-cheap-wills/ freewillsmonth.org.uk/ willaid.org.uk/ If you don’t have a Will, the rules of intestacy will apply and some of the people you love cannot inherit, including your cohabitating unmarried partner (unless you are in a civil partnership), close friends, carers and charities. If you are separated but not divorced, your spouse is able to inherit. This may not reflect your wishes. Intestacy is an added burden on your loved ones. You also miss the potential opportunity to reduce the impact of Inheritance Tax on your estate.

Types of legacies you can make to LEAF: • A percentage of your estate. This provides inflation-proof gifts and is usually the easiest for your executors to calculate • A percentage, or all, of the remainder of the estate after all other dispensations have been made (Residuary Gift) • A specified amount of money (Pecuniary Legacy) • A Specific named item/s (your jewellery, your house, your stocks and shares). Although all gifts are welcome, there may be a cost to the charity in insuring items or paying auction fees

Pledge a legacy, Plant a tree Please tell us when you have pledged a legacy to LEAF and we will plant a fruit or nut tree on a LEAF Demonstration Farm.

Already have a Will?

You can leave gifts to charities without re-writing your Will, by using a

Codicil.

You can write your own Codicil, though we recommend you use a Solicitor, particularly if your affairs are complex. You need two independent witnesses.

Example Codicil: I, [_____________], hereby declare this to be a first [second][other] Codicil to my last Will dated [___________].

In addition to any legacies given in my said Will, I give [___% of my estate (before the deduction of inheritance tax, if any is payable)] to Linking Environment And Farming (LEAF) Stoneleigh Park Warwickshire CV8 2LG Registered Charity No. 1045781 as an unrestricted legacy. It is my wish that it shall be applied for the benefit of said charity wherever the charity considers the funds could be best used at the time of their receipt. On realisation of the bequest a receipt from LEAF shall be sufficient discharge for my Executors.

In all other respects I confirm my said Will [and any previous Codicils thereto].

Signed

Date

in the presence of two independent witnesses who have signed and dated this Codicil in the presence of each other and of the person making the Codicil Witness Signature Name Address Date

Witness Signature Name Address Date

Find a local solicitor at Solicitors Regulation Authority solicitors.lawsociety.org.uk/ Find out more about codicils here gov.uk/make-will/updating-your-will For a small fee, Which? provides a Codicil template and legal check service wills.which.co.uk/making-a-will/codicil/

If someone has recently died As long as all the beneficiaries left worse off agree to the change, they can change a person’s Will after they have died.

A Deed of Variation allows you to update the person’s wishes, such as leaving gifts to grandchildren not born when the Will was written or adding gifts to charities. Deeds can be used to reduce Inheritance Tax liability (in which case, they must include a statement that it takes effect for Inheritance Tax purposes, and a copy must be sent to HMRC within six months).

Although you can write your own Deed of Variation, we recommend using a Solicitor.

Useful websites What to do when someone dies gov.uk/when-someone-dies Being an Executor citizensadvice.org.uk/family/death-and-wills/dealing-with-the-financial-affairsof-someone-who-has-died/#h-what-does-the-executor-or-administrator-do Support with bereavement cruse.org.uk/ Deed of Variation gov.uk/alter-a-will-after-a-death

Family and friends may wish to recognise the person’s life and values through a charitable donation. Funeral directors can arrange online collections for you, and charities welcome Gifts in Memory at any time. Donations to LEAF can be made here, or email us to discuss your wishes.

A short guide to Tax efficient giving Gifts to charity are exempt from Inheritance Tax. We provide some examples to illustrate Inheritance Tax. The thresholds and rates are correct at time of publication. Everyone’s personal circumstances differ and we recommend you ask your solicitor, accountant or financial adviser for detailed and up-to-date advice.

Inheritance Tax is payable on all estates above the threshold (currently £325,000) unless you leave everything above the threshold to your spouse or a charity. The standard rate is 40%.

Example: Your estate is valued at £500,000. Inheritance Tax is due on £175,000 - at 40% the liability is £70,000, leaving your beneficiaries to share £430,000.

If you leave your house to your children or grandchildren, the threshold can increase by a further £175,000 (‘Residence Nil Rate Band’). If you leave a gift to charity, your Inheritance Tax liability is reduced.

Example: Your estate is valued at £750,000. You leave 3% to a named charity and your house to your grandchild. Inheritance Tax liability is £91,000. The charity receives £22,500 and your beneficiaries share £636,500.

The Inheritance Tax rate reduces to 36% when 10% (or more) of your estate is gifted to charity.

Example: Your estate is valued at £1,000,000, you leave 10% to charity and your house to your grandchild. Inheritance Tax liability is £144,000 (compared with £200,000 with no donation to charity). Your beneficiaries share £756,000 and the charity receives £100,000 in your name.

If you leave everything above the threshold to charity, Inheritance Tax is not payable.

Example: Your estate is valued at £1,000,000. You leave your house to your daughter and £325,000 to your grandson, and the remainder of your estate to charities which share £500,000. Inheritance Tax is Nil.

For more information on Inheritance Tax go to: gov.uk/inheritance-tax

For the latest on Agricultural Property Relief go to: https://www.gov.uk/government/news/what-are-thechanges-to-agricultural-property-relief

Pledge a legacy, plant a tree Please tell us when you pledge a legacy to LEAF and we will plant a fruit or nut tree on a LEAF Demonstration Farm.

Please contact us if you would like to discuss anything relating to leaving a gift to LEAF. Linking Environment And Farming (LEAF) Registered Charity No. 1045781

www.leaf.eco enquiries@leaf.eco 02476 413 911 October 2021