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Leaving a gift in your will

Leaving a gift in your will is a wonderful way of making a difference to your local community for generations to come. We have a range of options to ensure your legacy gift will support the causes you care about.

By simply naming the Community Foundation serving Tyne & Wear and Northumberland as the beneficiary of your gift, you provide us with the flexibility to support a wide variety of important causes and to respond to changing needs in the future. We guarantee to use your gift in the best and most effective ways to improve lives in our communities.

You can also leave a gift of any size to support our Thriving Communities work, or one of our other theme or affinity funds. This is a great way of supporting causes in our area, because your gift allows us to target help effectively to those who need it most.

If you leave a gift of £10,000 or more in your will, you can set up your own named fund within our endowment. You choose the name of the fund and the causes to benefit from it. The Community Foundation will ensure your gift supports causes according to your wishes.

From 6 April 2012, if you make a gift in your will to charity of at least 10% of your net estate, the rate of inheritance tax due on the taxable part of the estate is reduced from 40% to 36%. This is great news to incentivise charitable legacies of 10% or more, but it is also worth noting that a gift of 10% can leave the same amount available to your other beneficiaries as one of 4%, and that any gift greater than 4% but less than 10% results in your beneficiaries receiving less money than they would have done if the gift was for 10%.  Below is an example.

On an estate of £1m, after deducting the nil rate band (£325,000 to 2015) the net estate is £675,000.

a)    If a gift of 10% of the net estate is made then:

  • £713,800 would be payable to the other beneficiaries
  • £218,700 would be payable in Inheritance tax (at the new 36% rate)
  • £67,500 would come to the charity

b)    If a gift of 4% of the net estate is made then:

  • £713,800 would be payable to the other beneficiaries
  • £259,200 would be payable in Inheritance tax (at 40% rate)
  • £27,000 would come to the charity

c)    If a gift of 8% of the net estate is made then:

  • £697,600 would be payable to the beneficiaries
  • £248,400 would be payable in Inheritance tax (at 40% rate)
  • £54,000 would come to the charity

How to set up a gift in your will

Making a will does not have to be expensive or complicated, but you should consult a solicitor for advice. You can also make minor changes or additions to your existing will.

For more information, download our information sheet.

All donations to the Community Foundation to establish or grow funds or support our work generally are covered by our Gift Acceptance Policy.

To discuss your options further email Lisa Cappleman or call 0191 222 0945.
Community Foundation Tyne & Wear and Northumberland - Enriching lives through effective giving
 

Cale Cross
156 Pilgrim Street
Newcastle upon Tyne
NE1 6SU
T: 0191 222 0945 / F: 0191 230 0689
E: general@communityfoundation.org.uk