I was listening to Radio 4′s Today Programme this morning where they were talking about how 75% of us give to charity during our lifetimes, but that number drops to 7% when it comes to leaving a legacy.
How, the presenter asked, do you persuade more people to continue their naturally generous streak from beyond the grave? Well, it looks as though the government has just done it for you. From next April those who leave 10% or more of their estate in the form of a legacy will have to pay less on death duties – 36% as opposed to 40%.
The majority of people are currently unaware of these changes, but a recent survey (also referred to in the Today Programme) indicated that 80% of people say they would be prepared to leave a legacy under the new rules. (Surely more persuasive than an aged stuntman setting himself on fire?)
The Telegraph has done the maths for me:
Inheritance tax is only paid on estates worth more than £325,000. Currently therefore, an estate of £1m would see the beneficiaries receive £730,000 and the taxman £270,000.
However, if 10 per cent of that estate above the £325,000 threshold is given to charity, the beneficiaries would only receive £713,800 and the taxman £218,700. It means the charity receives £67,500.
It’s a practical business leaving a will. It’s about tying up the loose ends. Making sure that that those people and things you care about most are protected and looked after. It’s one of those few processes where the head might well lead the heart.
All this makes me think that sentimental communication has little place in this environment. Charity legacy campaigns have often been awkward and woolly in the past. Now we have a huge opportunity to put that toe-shuffling approach to one side. We can offer people some straightforward, practical advice about what to do with their estates that benefits them and the charity they choose to support.
Tags: Fundraising, legacies, legacy, Radio 4, Today Programme, wills
