Understanding percentage gifts

Did you know that more than 90% of the amount donated to UK charities from people’s Wills comes from percentage or residual gifts rather than donations of a fixed amount?  

Contrary to what people might think, leaving a percentage gift to charity needn't be complicated and there can be several advantages – for you and the charity you support. 

Here are five reasons why you might choose to consider leaving a gift as a percentage of your estate - although we always advise speaking to a professional solicitor or Will-writer first: 
 

Reduce Inheritance Tax (IHT)

Any gift to charity from your estate is tax-free, but if you donate 10% or more of the net value, the IHT rate on your estate is reduced to 36% (down from 40%). This can make a big difference to your tax bill. 

Find out more about the IHT incentives here.
Family first

If you leave a residual gift – where you donate what’s left (or a proportion of the estate) after taking care of your family and friends – it’s an easy way to ensure you get your gifts for loved ones in first, with any charitable donations coming in after that.

Read why you might choose to leave a gift.
Maximise impact

When people leave a percentage gift or residual amount, the value is typically around 10 times the value of a donation given as a set sum. These donations can be transformative for charities, funding vital services & keeping the cogs turning in tough times. So, for those who want to maximise their impact and shape the world long after they are gone, it can be a special way to go about it.

See these stories for inspiration.
Monetary values change

The value of money changes over time, particularly with rising inflation, so a percentage gift can help to make sure your loved ones are taken care of, while allocating a small share to good causes. Even 1%, 5% or 10% can go a long way for your favourite charity.

Find out how to write a gift into your Will.
Flexibility

A percentage gift (or share of your estate) can be as small or large as you like. Whatever you decide - set sum or residual amount - it will be hugely valued by whichever charity or charities you choose in your Will.

Find a charity that’s close to your heart.

The key is in getting good professional advice for writing your Will to make sure it meets your needs – allowing you to support your family, loved ones and any good causes exactly as you wish.