Remembering us in your Will
By mentioning Depaul
Many think that only the very rich leave money to charity when they die. This isn't the case. The reality is however big or small your gift, you can make a significant difference to the lives of the homeless, vulnerable and disadvantaged young people we work with. Depaul
Why is it important to make a will?
Making a will is the only way you can be sure that your wishes will be followed after you die. If you don't make one, part or all of your estate may go to people who you never intended to benefit. Also, if you don't prepare properly, a substantial part of what you leave behind may go to the State, depriving your loved ones and favourite charities of the benefit of your assets.
What are the tax advantages of making a legacy to Depaul
There has never been a better time to leave a legacy to charity. From 6 April 2012, the rate of Inheritance Tax will be reduced from 40% to 36% for estates leaving a legacy of 10% or more of their net estate to charity. While this does not benefit any beneficiaries, it is a very tax efficient way of giving to charities.
For example, if 10% of the taxable element from an estate of £500,000 is left to charity, not only will this £17,500 charitable gift be exempt from inheritance tax, in addition the tax rate applied to the remaining taxable estate will be reduced to 36%. The result will be that the 'cost' to the estate of leaving £17,500 to charity is just £4,200. The 'cost' of leaving £67,500 to charity from an estate of £1,000,000 would be £16,200. The worked examples below show how these figures are calculated.
If your gift reduces the value of your estate to £325,000 or less, then no inheritance tax is payable.
How to go about making a will...
Writing a will is relatively easy and inexpensive, but should always be drafted by a properly qualified professional. If you do not have a solicitor you can find one through The Law Society.
There are three main types of legacy to consider
· Residuary legacy:
Part, or all, of your estate (after debts, funeral costs and pecuniary gifts are paid)
· Pecuniary legacy:
A specific sum, which can be index-linked to safeguard its future value
· Specific legacy:
A particular item to be used or sold by the beneficiary
Suggested wording for leaving a legacy to us
If you would like to remember Depaul
Residuary gifts
"I give all/fraction/% share of the residue of my estate to DEPAUL
Pecuniary or Specific gifts
"I give to DEPAUL UK (RCN 802384) of 291-299 Borough High Street, London, SE1 1JG, the sum of £amount/specific gift of my item to be used for its general charitable purposes and I direct that the receipt of the treasurer or duly authorised officer shall be a sufficient discharge to my executors."
If you are worried about providing for your family but don't want to turn your back on your favourite causes, ask your advisor about a reversionary legacy, which allows you to leave assets to a named individual for their lifetime while deciding who should benefit after they have passed away.
How to change your will
Minor changes or additions can be incorporated into your will by making a codicil. A codicil is an instruction that is added to your existing will and changes it in any way you wish. It must be drawn up and executed in the same way as a will in order to be valid.
To find out more about how to give to Depaul
