Donating excess to charity

L

Logo

Registered User
Messages
287
A friend is thinking about changing his will. Is it possible to make a provision such that relatives receive as much as legally possible without having to pay inheritance tax and the excess donated to a nominated charity tax-free. Is this a straight forward transaction? Thanks
 
Last edited:
Yes.

Might like to consider taking out life cover policy which will pay the IHT.
 
Thirsty said:
Might like to consider taking out life cover policy which will pay the IHT.
Click to expand...
Thanks for the reply, but he has no reason to pay for life cover insurance atm - or does he?
 
Last edited:
It could be hard to come up with that wording.

It would be better just to leave a specified sum to the named individuals and revise his will if the thresholds are increased.

But what happens if that relative gets an inheritance in the meantime which uses up the threshold?

Brendan
 
Well you've said they don't want to have a beneficiary stuck for IHT, so a life policy specifically to cover it would remove that concern.

Note this is a specific product, not a general life policy.
 
Is there much of a difference between paying taxes and giving to charity?
 
Many see taxes as going to the 'government' while charitable donations go to the 'poor' and 'needy'. I think the reality is that whichever way the money goes there might not be a lot of difference in how it ends up. My advice to Logo's friend would be not to get too hung up about it.
 
Logo said:
A friend is thinking about changing his will. Is it possible to make a provision such that relatives receive as much as legally possible without having to pay inheritance tax and the excess donated to a nominated charity tax-free. Is this a straight forward transaction? Thanks
Click to expand...

This is very straightforward, and all solicitors experienced in making wills will be able to draft such a will.

I do this all the time.
 
Vanilla,

If a named beneficiary has previously used their full CAT exemption in the relevant group, do they get nothing in such a will? Does the Executor have access to this information?
 
You must log in or register to reply here.
Back
Top