The number of people giving to charity in their Will may rise over the next five years, despite experts predicting that legacy income would fall as a result of the pandemic.
The new estimates come after analyst Legacy Foresight predicted that legacy income would decrease by between eight and 27 per cent in 2020, with the average value of residual bequests also set to decline by four per cent.
The group reported that the pandemic was likely to have a significant effect on the value of property – a major source of legacy income.
Commenting on the earlier prediction, Jon Franklin, Economist at Legacy Foresight, said: “These forecasts show a more dramatic decline in legacy income, especially over the coming year.”
However, the latest predictions suggest that legacy income could increase over the next five years, growing from £3.2 billion to up to £3.8 billion by 2024.
Tim Steele, A Partner with Palmers who specialises in Wills and estate administration, said: “Leaving a legacy in a Will is not only an altruistic act but is also a tax efficient method of managing your financial affairs.
“Gifts to charities are exempt from Inheritance Tax (IHT) so any charitable donations written into your Will are not considered to be part of your estate for IHT purposes.
“Additionally, your estate will benefit from a reduced 36 per cent IHT rate, if you decide to leave 10 per cent of your net estate to charity.”
Tim added: “We are conscious that the current public health crisis is, understandably, leading many people to either make or revise their Wills.
“Traditionally, our approach to the preparation of Wills has been to begin with a face to face meeting with our clients, to explore their personal and financial circumstances and their aims and wishes, and then to offer advice and progress matters from there.
“Although our offices have now fully re-opened, we understand people may still be reluctant to meet in person so we are also able to offer video calls with clients via a number of remote methods including Facetime, WhatsApp and Zoom.
“Once we have received instructions, we will prepare a draft Will for consideration, along with a covering letter addressing both the content of the draft Will and our initial discussions.
“Further discussions can take place via phone or video call as and when required.”
For support making a Will and protecting your family’s wealth, please get in touch with our expert team.