Leaving a Gift in your Will and Inheritance Tax

Leaving a Gift in your Will and Inheritance Tax

Lucy Carden

Up to 30% of our income each year comes from gifts in Wills. At a time when nature is in crisis, we need these gifts more than ever.

Without Gifts in Wills we wouldn't be able to continue our work across Kent or look to realise our vision of a Wilder Kent

There are also potential benefits to leaving gifts, in your lifetime or in your Will, as explained here by Aaron Spencer, Partner and Head of Private Clients at Furley Page Solicitors.

Supporting Kent Wildlife Trust

You can give any amount without incurring inheritance tax. Instead, the value of your estate will be reduced by the amount you leave to charity before inheritance tax is calculated. If you leave more than 10% of your estate to charity, the rate of any inheritance tax could be reduced to 36% (down from 40%) – leaving more money available for your loved ones.

Small Gifts

Inheritance tax is not payable on small gifts, which are known as ‘exempted gifts’. You can give gifts of up to £250 to as many people as you like. You do not need to worry about gifts for your spouse or civil partner as long as they live in the UK permanently.

Annual exemption

Everyone has an annual exemption from inheritance tax which allows you to give away up to £3,000 per year without incurring a potential inheritance tax liability. If you have not made any gifts in the last tax year or you did not use up the full allowance, you can carry forward any leftover allowance to the following year (but for one year only). If you use all your £3,000 annual exemption but you still want to give more money, there are other types of gifts that don’t create a tax liability. The rules surrounding inheritance tax gift exemptions are quite complicated and it is a good idea to seek advice about any aspect of inheritance tax planning. A specialist private client lawyer can advise you on how to make gifts most effectively and to ensure your relatives do not face an unexpected tax bill after you die.

This is just a quick overview on the topic for advice on inheritance tax planning you can contact Aaron on aas@furleypage.co.uk, 01227 763939 or via furleypage.co.uk.

For general advice on leaving a gift to Kent Wildlife Trust in your Will please email sam.campbell@kentwildlife.org.uk

Family walking in woods