New Data Shows Gifting To Charities Up 56% In Last 12 Months
Legacy gifting in wills has surged in popularity because of the coronavirus pandemic, new data has revealed.
Gifting money to charities in wills has shot up by 56% in the last 12 months, according to the latest figures from Co-Op Legal Services’ own business data, with a massive 81% increase between mid-March – when the lockdown first began – and June 2020.
Experts at top national law firm Irwin Mitchell say the figures are likely to be a mix of many looking to get a will in place while recognising that many charities would struggle to survive the economic hit that lockdown had on businesses – and that their own work reflects the same trend.
Expert Opinion“The new data confirms what we’re seeing anecdotally as well: the pandemic has caused many people to reassess their plans for the future, and we have seen an increase in demand for will writing, particularly through our charity partners.
“Many charities have been struggling this year with fundraising since the onset of the pandemic. Gifting within wills helps to ensure that they have a future income stream and helps to guarantee the important work they do can continue.
“Some of our clients are unaware that the option to leave to charity even exists and once suggested to them, are eager to ensure their favoured charity is supported. Without being made aware of this, they perhaps wouldn’t have signed up to charity gifting in the same way during their lifetime." Emma McCann - Partner
The added bonus of gifting to charities in wills is little-known, but valuable – and can even be used as a way of decreasing inheritance tax.
Emma continued: “There are different options within wills for charity gifting including a share of the overall estate, a specific amount or a gift within a trust to be used over a longer period of time. Leaving legacies to charities can also be a very tax-efficient way of structuring your will as these types of gift are tax free.
“In addition, if a gift of over 10% of the taxable estate is left then this can reduce the overall amount of inheritance tax payable and have a positive effect on the rest of the estate.”