None of us likes to consider our mortality, but death and taxes are two certainties in life.
Whilst you may not be able to avoid tax completely, charity legacies are one way of making your Will more tax efficient. Charity legacies can now cost your loved ones just a fraction of the amount you leave to the charities. This results from a reduced rate of Inheritance Tax where you leave at least 10% of your estate to charity, after deducting your tax free allowance. Let’s have a look at an example. Say there is a taxable estate of £1 million (that is after deducting the Inheritance Tax free allowance of £325,000). Look at the following two scenarios below: