Leave a legacy that lasts

The 8-14 September is Remember a Charity in your Will Week – a timely reminder of how powerful legacy giving can be in supporting the causes that matter most to us.

Through our Spotlight networking group, we connect with a wide range of professionals across Wales, including many in the legal sector. It was here that we met Catrin Wigley, Partner in the Estate Planning Team at Hugh James, who kindly shared her expert insights on how charitable legacies can be incorporated into estate planning.

Q&A: Expert Insights on Charitable Legacy Planning

1. How common is it for people to ask about charitable giving when they’re making or updating their wills?
It is increasingly common for clients to want to discuss charitable legacies when discussing their will instructions. Many clients now raise charitable giving proactively, and we routinely explore it as part of a well-rounded discussion about values, family needs and tax planning. Awareness has grown markedly in recent years, and clients often appreciate knowing how straightforward and impactful a legacy can be.

2. What’s the first thing you tell clients when they mention wanting to leave something to charity in their will?
Leaving a charitable legacy within a will is simple to do and is very tax-efficient. The key is for the client to identify either their chosen charity, or the charitable work and aims that they wish to benefit. Clients also need to choose the form of gift that best fits their intentions, for example either a fixed sum legacy, a gift of a specific item, or a percentage of the residuary estate.

3. What are the main tax advantages for people who include charitable gifts in their wills?
Including a charitable gift within a will has an Inheritance Tax (IHT) advantage. Gifts to UK-registered charities are exempt from IHT. If at least 10% of the estate passes to charity, the IHT rate on the remaining estate, if taxable, is paid at a reduced rate of 36%, as opposed to the normal death rate of 40%.

4. Are there any minimum amounts people need to consider when thinking about charitable legacies, or can any amount make a difference?
Any amount can make a meaningful difference to a charity’s work and there are no legal restrictions on the size of the intended legacy. For many people, leaving a percentage of the residuary estate is attractive because it scales with the estate and avoids the need to revisit fixed figures. Others prefer modest fixed sums and will make legacies of a specified amount. Both approaches are perfectly acceptable.

5. How do you help clients balance leaving money to family whilst also supporting causes they care about?
Open discussions about the family’s needs and any potential claims that can be made against the estate, are a good place to start. We can shape charitable giving around those discussions. Considerations will often include using percentages rather than fixed sums to enable family and charities to share the estate on a proportionate basis. Gifts within wills can be included on a contingent basis, for example, if the overall value of the estate exceeds a set figure, or a gift to charity if a chosen family beneficiary has died first. Life-interest or flexible trust structures, for example providing for a spouse or partner for life, with a charity receiving what remains is also a possible option. Clear communication with family and a short letter of wishes explaining the rationale is often the best way to reduce later misunderstandings.

6. Do you find that people are more interested in supporting local causes rather than national charities when it comes to their wills?
Clients tend to support organisations or causes that have touched their lives, for example local hospices, community groups, or schools. Alongside this, gifting to national medical, conservation or humanitarian charities remains a popular option. There is no “right” answer. What matters is clarity; regardless of the size or location of the charity it is important to ensure that the will refers to the correct legal name and charity number to avoid any ambiguity and includes a sensible fallback provision if the charity merges or changes name in the future.

7. How far in advance should people be thinking about including charitable gifts in their estate planning?
It’s never too early to think about including charitable gifts as an effective estate planning measure. Charitable gifts should be considered whenever a will is made or reviewed and especially if a client’s circumstances change, for example if the value of their estate significantly increases. As circumstances and priorities evolve, a new will or a short codicil can be used to adjust the gift and keep details up to date.

8. What questions should solicitors be asking clients who express interest in charitable giving to help them make the right choice?
If clients express an interest in charitable giving, then the following questions should be considered:

1. Consider the client’s priority and the purpose of the legacy: which causes matter most, and why to the client.
2. The type of gift that the client wishes to make: will this be a fixed sum, a specific item, or a percentage of the residuary estate? Would a residual share better maintain balance with any family gifts?
3. Consider the client’s tax position: would aiming for the 10% charitable threshold be appropriate or beneficial to the client’s estate.
4. Charity identification: exact charity name, charity registration number and address; do they want to include a default gift if the charity changes or has ceased to exist?
5. Restrictions: should the gift be unrestricted or directed to a particular project or location? If the client wishes to include a restriction, would this be better framed as a wish or preference to be included within the will?
6. Recognition and contact: do the clients want the charity informed of their legacy during their lifetime?
7. Family dynamics: are there dependants or others who might expect provision from the estate and how can we reduce the risk of disputes after death.
8. Is there an existing charity that fulfils the charitable purpose? If not, are there other structures that could be considered, or other organisations that could assist to establish a charity or a charitable fund, in the clients’ memory?

We’re grateful to Catrin for sharing her expertise, which shows just how simple – and powerful – it can be to include charitable giving in your will. If you’d like to explore how your legacy could make a lasting impact in Welsh communities, we’d be happy to have that conversation with you.

The unique benefits of a legacy fund with us

Catrin’s final point about establishing charitable funds “in the client’s memory” is particularly relevant to what Community Foundation Wales offers. While traditional charities do excellent work, a legacy fund through Community Foundation Wales provides unique advantages:

• Personalised and lasting: Tailor your fund to the causes you care most about, with flexibility to adapt as community needs evolve. Your fund can carry your name or honour a loved one, creating a permanent legacy.
• Local expertise: Our deep knowledge of Welsh communities ensures your generosity has the greatest impact where it matters most.
• Professional and trusted: We manage the complexities and provide continuity, so your wishes are delivered effectively, even if individual charities change or close.
• Family involvement: Loved ones can play an advisory role, helping to carry your charitable values across generations.

When you create a legacy fund with Community Foundation Wales, you’re not just supporting existing charitable work, you’re opening up new possibilities for positive change across Wales.