Making a will: how to maximise your legacy in a cost of living crisis

Lucinda Frostick

Director, Remember A Charity

Two-thirds of us support good causes in our daily lives but, increasingly, people across the UK are looking to extend their charitable impact beyond their lifetimes. Even in a cost of living crisis, people are including donations in their wills.

The UK is a generous nation, and, in a post-pandemic landscape, people appear even more driven to make a positive impact on the world we leave behind; with 21% of people saying they feel more likely to support charitable causes in their lifetime and 19% wanting to leave the world a better place.¹  

Including a charity when making a will 

However, times of economic uncertainty and financial constraints can make it difficult for people to follow through on their philanthropic intentions. For charities, these times of crisis can be a double-edged sword, with donations being cut at the very time their services are so urgently needed.  

In a recent study by Charities Aid Foundation, 8 in 10 charities revealed that demands for services increased from last year, but less than half of those charities are confident they can meet those needs. This is where the rise of ‘Willanthropy’ (donating from your will) has proved so vital across the country, generating long-term funding and increasing charities’ resilience for whatever lies ahead.  

If you donate 10% or more of your estate to charity, the total amount of inheritance tax you pay
reduces from 40% to 36%.

Debunking myths and understanding tax incentives 

Still, there are a few myths around this form of giving, such as the belief that it has to be a considerable sum or that it’s only an option for those without children. In reality, as a supporter, you can leave any amount to any charitable cause in your will, alongside gifts for family and friends. Whether you wish to donate a set sum, percentage or residual amount, it’s important to talk to a solicitor or professional will-writer. 

With one in four professionally written wills now including a gift to charity,² advisers are also helping to ensure that charity supporters benefit from the relevant tax incentives. In the UK, any gift to charity in a will is free from inheritance tax. If you donate 10% or more of your estate to charity, the total amount of inheritance tax you pay reduces from 40% to 36%. 

Charities you can help in your will 

For charity supporters, it can be such an empowering way to give. From local hospices to animal rescue services and mental health helplines to homeless shelters, every charity can benefit from gifts in wills. 

[1] Research Without Barriers, 2023
[2] Savanta Will-Writing Tracking Study, 2022