We explain how a thoughtful Will can protect loved ones while backing causes you care about. Gifts to UK-registered charities are generally free from inheritance tax, and in some cases they can lower the tax rate that applies to the rest of your estate.
Our aim is practical guidance. We set out the key choices you should consider before you update a Will. That includes ways to give, the tax benefits and the risks if instructions are unclear.
We will cover common methods for giving to charity, what each option means for your legacy, and simple examples you can use to sense-check your plans. If you have dependants, a blended family, property or investments, we flag when specialist advice makes sense.
Key Takeaways
- Gifts to registered charities are usually inheritance tax-free and can reduce tax on the remaining estate.
- Choose the method of giving with your loved ones and legacy goals in mind.
- Clear wording in a Will reduces the risk of disputes and unintended tax bills.
- Simple examples help you judge what “tax-smart” might mean for you.
- Get tailored advice when dependants, blended families or complex assets are involved.
Why split your estate between charity and family?
Balancing support for relatives with gifts for good causes can shape a personal and lasting legacy. We often see people want both: to look after close ones and to back causes that matter.
Creating a personal legacy while supporting loved ones
Think of legacy as a story you leave behind. Simple decisions can show what you valued. Clear instructions make it easier for those you care about.
How charities use gifts: donations, services and long-term impact
Charities rely on regular donations and fundraising events to keep services running. A gift in a Will can fund projects for years and extend impact beyond your lifetime.
When this approach is most suitable for your circumstances
- It works well when adults and grandchildren are secure but you still want meaningful giving.
- It fits when you wish to combine practical support with a public legacy.
- It suits those who want clarity and kindness at a sensitive time around death.
“A clear plan saves the people you love from extra stress.”
Understand the UK inheritance tax rules that affect your decisions
Understanding how inheritance tax works helps you make clear, practical decisions about gifts in your Will.
Inheritance tax is a tax on the value left after debts and certain reliefs are deducted. It matters because it changes the amount that beneficiaries receive. We explain the basics so you can plan with confidence.
What counts as your ‘net estate’ for tax purposes
Your net estate is the value after paying debts, funeral costs and allowed reliefs. This is the figure used when tax is calculated.
Gifts to registered charities are inheritance tax-free
A gift in a Will to a UK-registered charity is exempt from inheritance tax. That exemption is one of the simplest reliefs available and can reduce the taxable amount on what remains.
The nil-rate band and how giving can reduce the taxable amount
The nil-rate band is the tax-free threshold, currently £325,000. Anything above that may face inheritance tax. Making a qualifying gift reduces the taxable portion because the donation is deducted before tax is worked out.
- We define inheritance tax in plain English and explain why it matters.
- We clarify that debts and liabilities cut the net figure before tax applies.
- We show how a qualifying gift lowers the taxable amount.
Rules can be technical. For clear, practical guidance and detailed information, see our note on tax-free gifts: inheritance tax-free gifts.
leaving part of estate to charity and part to family uk: planning your goals and amounts
Begin by naming clear goals. List who needs practical help, which causes matter most, and what your long-term wishes are. This keeps the plan fair and simple for executors.
Balancing family needs, dependants and your long-term wishes
We advise you to assess dependants first. Check who relies on regular income and who has savings.
That information shapes your decision. A kinder choice today reduces the chance of later claims or disputes.
Choosing a fixed sum vs a percentage to protect against changing estate values
A fixed sum is simple. It can lose value over time as inflation rises.
A percentage of the residuary estate keeps the gift fair as the total value changes. That often protects both family and causes when time affects money and assets.
Deciding whether to leave money, property, shares or other assets
Different assets bring different practical issues for executors. Money is easiest to transfer.
Property and shares can take longer to value or sell. Specific instructions in the Will cut uncertainty and help the correct tax rate apply later.
- Set goals first: who needs support and what gift you want to give.
- Pick the format: fixed sum, percentage, or a specific asset.
- Write clear instructions: so executors can act without delay.
Choose the right charity and document it properly
A little due diligence makes sure your charitable gift has the impact you expect. We check the Charity Commission register first. That gives clear information on what a charity does and who its trustees are.
Check legitimacy and record the details
Look up the full name and registered number on the Charity Commission site. Record both in your Will. Names can change; the number does not. That avoids confusion when executors act.
Assess impact from reports and trustees
Read annual reports and accounts. See how much goes to services versus fundraising and admin. Trustee lists show who oversees the charity and how well it is governed.
Avoid clear red flags
Spot risky signs such as a statutory inquiry or missing accounts. These suggest governance problems and higher risk for your gift. If you plan a large or complex gift, seek an expert for tailored advice.
“A recorded charity number removes doubt and helps executors act quickly.”
| Check | Why it matters | Where to find it |
|---|---|---|
| Registered number | Prevents mistaken identity | Charity Commission register |
| Annual report | Shows impact and spending | Charity website / Commission entry |
| Trustee details | Indicates governance quality | Commission listing |
| Statutory inquiry flag | Sign of serious concerns | Commission actions & notices |
How to leave money to charity in your Will: the main gifting options
We set out four common ways to leave money charity so you can pick what fits your aims and your loved ones. Each route has practical steps for executors and different tax effects.
Leaving a fixed cash sum (pecuniary legacy)
A pecuniary legacy names a fixed sum. It is easy to understand and simple to pay.
Downside: inflation or rising costs can reduce its real value over time.
Leaving a share of the residuary estate (percentage gifting)
A percentage gift takes a share of what remains after debts, costs and other gifts. It usually keeps the gift fair as values change.
This approach helps both heirs and causes because it adjusts automatically.
Leaving a specific asset such as property, shares or valuables
You can leave property, shares or other valuables. These gifts may deliver more value but can need valuation or sale.
Executors may require professional help to transfer or realise these assets.
Leaving the whole estate to charity and the risks to consider
Giving the whole estate charity can maximise impact. But it may leave dependants with nothing and could prompt legal claims.
Clear drafting and early conversations reduce the risk of disputes. For practical guidance on wording and consequences, see our guide to gift charities in your.
Tax-smart giving: using the 10% rule to reduce inheritance tax from 40% to 36%
A modest increase to a charitable gift can sometimes reduce the overall inheritance tax burden on heirs. If at least 10% of the relevant net amount is left to a qualifying charity and the estate is liable to inheritance tax, the tax rate on the rest can fall from 40% to 36%.
How the reduced 36% rate works in practice
The rule means the gift is taken from the taxable value first. Then the lower rate applies to the remaining taxable sum.
This can make a larger charitable gift more affordable for heirs in net terms.
When increasing a smaller gift to 10% helps both relatives and charity
Boosting a small legacy until it reaches 10% can save tax on the remainder. That often reduces the family’s effective cost of the donation.
It is not always a straight swap, but the tax saving can narrow the gap between what the charity receives and what heirs lose.
Illustrative examples using simplified figures
- Example 1 — £500,000 net: a £10,000 gift reduces the taxable amount by that sum. In simple terms the tax saving on that gift could be shown as 40% of £10,000 (£4,000).
- Example 2 — £1,000,000 net: leaving 10% (£100,000) may trigger the 36% rate on the remainder. Using simplified arithmetic gives an indicative IHT figure of £324,000 in this scenario.
“A well-placed charitable gift can be one of the biggest tax-smart levers available when you already plan to give.”
Remember: these are simplified calculations. Thresholds, reliefs and precise tax treatment can be technical. Seek legal or tax advice before assuming exact savings.
Adding conditions and instructions without creating problems for charities
We recommend gentle directions rather than strict rules so a charity can adapt over time.
It is fine to say how you would like money used. But tight conditions can make a gift unusable.
How to express your intentions and keep the gift workable
Use clear requests rather than hard conditions. A request guides trustees. A condition can force refusal.
Example: ask for support of a project in a region, not an exact programme name that may end next year.
Why speak to the charity first
Talk with the charity before you sign the Will. They can confirm if they can accept the charitable gift under your rules.
- Explain the difference between a friendly request and a binding condition.
- Agree a fallback use if the original plan cannot be met.
- Record contact details and any agreed wording for your executors.
“A small, flexible instruction protects your intent and helps the organisation act promptly.”
| Instruction type | Effect on charity | Risk for executors | Suggested wording |
|---|---|---|---|
| Helpful request | Easy to accept | Low | “Preferably used for X; otherwise for related work.” |
| Conditional gift | May be hard to meet | High | “Only to be used for X (if possible).” |
| Specific asset | Needs valuation/transfer | Medium | “Leave property 12 High St; trustees can sell if needed.” |
| Fallback clause | Reduces refusal risk | Low | “If X not possible, apply to Y or similar purposes.” |
Consider whether a charitable trust is the right route
For some people a formal trust gives structure and certainty. It can hold capital and income, and trustees manage how donations and grants are made over time.
What a charitable trust is and how trustees manage donations and grants
A charitable trust is a legal vehicle that holds assets for charitable purposes. Trustees run the trust, decide on donations or grants, and must follow the trust’s objectives.
Choosing trustees matters. The right people balance care for the cause with basic financial oversight.
Irrevocable gifting and control: benefits and trade-offs
When you place assets into a charitable trust, the transfer is usually irrevocable. That gives the charity lasting support and can secure tax advantages.
However, you lose direct control once the trust holds the gifts. That trade-off suits those who want long-term impact rather than short-term direction.
Setting objectives and documenting rules in a Trust Deed
A Trust Deed records trustees, charitable objectives and the rules the trustees must follow. Clear rules help trustees act quickly and reduce future disputes.
Tax rules and charity law affect how the trust operates. We recommend private client advice before you proceed.
| Feature | Why it matters | Typical content |
|---|---|---|
| Trustees | Day-to-day decision makers | Names, powers, replacement process |
| Objectives | Defines charitable purpose | Scope, geographic limits, allowed grants |
| Irrevocability | Locks in support | When assets become trust property |
| Tax considerations | Affects net benefit and compliance | Reliefs, reporting duties, adviser note |
Deciding if a trust suits you depends on whether you want structured oversight and lasting gifts, or a simpler instruction in a Will. For practical benefits and timings, see our note on the wider advantages of planned giving: benefits of charitable giving.
Update your existing Will safely
A tidy set of documents protects your intentions and helps executors act quickly.
When a codicil is appropriate for adding a charitable gift
A codicil suits small, simple changes. Use it for adding a single gift or correcting a name. It takes less time and is cheaper than a full rewrite.
When it’s better to make a new Will to avoid confusion
If you have several changes, existing codicils, or complex assets, make a new Will. Multiple documents raise the risk of contradiction. A clean Will is the clearest way for an executor to follow your wishes.
Execution essentials: signing and witnessing correctly
Wills and codicils must be signed and witnessed exactly as the law requires. Small mistakes can void the document. That puts everything at risk and creates delays for the client.
“Get formal legal advice early — a short check now can save time and expense later.”
- When in doubt, seek legal advice from an expert.
- Prefer a new Will if multiple changes exist or prior codicils are in place.
- Check signing and witnessing steps with your solicitor to protect the client’s intent.
Next step: for clear guidance on making a charitable clause the right way, see our guide on secure your family’s future with a UK charity. We recommend speaking to an adviser who can tailor the approach to your time frame and wishes.
Reduce the risk of challenges from family and dependants
Simple, documented steps often prevent claims and spare executors needless stress.
How claims can arise under the Inheritance (Provision for Family and Dependants) Act 1975
The Act allows certain people to ask a court for more reasonable provision if a Will does not make adequate financial arrangements for them.
Dependants, spouses and some long-term partners may bring a claim. The court looks at needs, resources and the testator’s obligations.
Common grounds for disputes: undue influence, capacity and perceived unfairness
Challenges often cite perceived unfairness, pressure on the testator, or doubts about mental capacity at signing.
These points can arise even if the Will is valid on its face. That is why simple safeguards matter.
Practical steps to evidence your decision and protect your executors
We recommend a short written note that explains your reasons. Keep it with your Will and share it with your private client adviser.
Other helpful actions:
- Use professional drafting and legal advice when making the document.
- Record medical checks if capacity might be questioned.
- Tell loved ones your intentions where appropriate.
“A clear, professionally drafted Will and a brief statement of reasons often reduce the risk of dispute.”
| Risk | Practical defence | Benefit for executors |
|---|---|---|
| Perceived unfairness | Written explanation of needs and choices | Fewer family queries and clearer instructions |
| Undue influence | Independent witnesses and solicitor involvement | Stronger evidence of free will |
| Capacity challenged | Medical notes or capacity assessment | Less chance of costly litigation |
Conclusion
A well-written Will turns good intentions into practical support for people and causes.
We sum up the key points simply. Plan the goals you want. Check the size and type of gift. Pick a reputable recipient and write clear instructions.
Even modest gifts reduce the taxable net and can shrink the final tax bill. Larger gifts that meet the 10% threshold may lower the tax rate that applies to the remaining sum.
Think beyond money. Clarity protects loved ones, reduces stress for executors and secures your legacy of support for services you value.
Next steps: review your Will, list the causes you want to back, and get tailored advice if dependants or complex assets mean extra care. For a practical gift guide, see our gift guide.