There are a number of different ways in which a charitable gift can be left in a Will:

• A pecuniary legacy – you can leave a fixed sum of money for example £5000
• A specific legacy – you can stipulate that a specific item such as an item of jewellery is gifted
• A residual legacy - you can give a portion or the entirety of your residuary estate to charity. This means that the charity will receive the funds that are left in your estate (or a portion of the funds that are left in your estate) after any specific gifts, debts, funeral expenses and inheritance tax are paid.

Inheritance Tax may be payable on an estate (including property, money and personal belongings) when someone dies if the value is over the taxable threshold(s). If the estate value is above the taxable threshold(s) Inheritance Tax is charged at 40%. There are a number of exceptions to this; for example, if you leave everything (or everything above the threshold) to your spouse or civil partner, there will normally not be any Inheritance Tax to pay.

Leaving charitable gifts in your Will can eliminate or reduce the Inheritance Tax payable in your estate. If you make a charitable gift (or various charitable gifts) in your Will, there is tax relief; those charitable gifts are Inheritance Tax free.

Further, if 10% or more than 10% of your estate is left to charity, the rate of Inheritance Tax applicable to your entire estate can be reduced from 40% to 36%. In many estates, this reduction can result in a considerably smaller Inheritance Tax bill upon death.