Legal Specialists Examine Benefits Of Leaving Gifts To Charities in Wills

A businessman’s decision to leave two classic Ferraris to the RNLI in his will is a great example of how many people do choose to leave gifts to charities close to their heart when putting plans in place for the future, according to will experts.

The charity has confirmed that the Ferrari 250 GT SWB and 275 GTB/4, which were both built in the 1960s, were left to the organisation by Ferrari Owners’ Club member Richard Colton.

Both cars are set to be auctioned in October at an event at the Imperial War Museum and the charity will use the proceeds to fund a new lifeboat. Guy Rose of the RNLI said the charity was “humbled” and “deeply grateful” for Mr Colton’s decision.

According to wills specialists at Irwin Mitchell, the decision to leave gifts to charities is not an uncommon step for those preparing a will to take.

Expert Opinion

“Stories of this nature often tend to capture the public imagination, but we see many instances when people who are putting plans in place for the future are keen to ensure that charities and causes close to their hearts benefit from their estate. <br/> <br/>“Any wishes left in a properly prepared will are also binding, which means that people are able to state clearly how they would like all manner of items to be handled – including prized possessions and anything that might seem to be a little out-of-the-ordinary. <br/> <br/>“However, while many people will choose to leave gifts to charity for personal reasons, there are some wider financial benefits. Gifts to charities in wills are completely free of inheritance tax and can reduce the inheritance tax rate on the rest of the estate, if more than 10 per cent is left to a charity, so this could prove attractive to some.” Gillian Coverley - Partner