New figures from the Office for National Statistics show that life expectancy increases will slow over the next five years, meaning an uplift in legacy income for charities.
Death projections published at the end of October have been examined by Legacy Foresight, analysts of the legacy and in-memory sectors. They have predicted an increase of £650m in legacy income for UK charities over the next five years.
The ONS figures show that life expectancy increases have slowed considerably for both men and women since 2011, which has driven up the number of projected deaths. The latest statistics predict that from 2019-2024, 3.1 million people will die, compared to the 3.0 million predicted in 2017.
Legacy Foresight predicts this will result in an extra 26,000 gifts to charities outlined wills within that period, with an average value of £25,000. This represents an increase of 4%.
The Full Population Figures
During the 10 years between mid-2018 and mid-2028, the projections for the UK as a whole suggest:
- 7.2 million people will be born
- 6.4 million people will die
- 5.4 million people will immigrate long term to the UK
- 3.3 million people will emigrate long term from the UK
What is a Legacy?
A legacy is a gift made to a beneficiary in a will. This can include money, an object or a property.
An increasing trend is to leave a gift in your will to a charity. Last year, we wrote about how the number of charities receiving gifts in wills is increasing, having jumped by 53% year on year.
£3 billion was donated to charities via wills in 2018, with the most common type of charity to receive gifts being children’s charities, local causes, rescue organisations, religious causes and charities to combat poverty.
Many are opting to leave a gift to charity in their will to reduce their Inheritance Tax liability. If you leave something to charity in your will, it won’t count towards the total taxable value of your estate. This can considerably cut, and in some situations, eliminate any Inheritance Tax costs.
You can also cut the Inheritance Tax rate on the rest of your estate from 40% to 36%, if you leave at least 10% of your “net estate” to a charity.
Legacy donations will rise over the five-year period of 2019-2024 due to the new ONS projections, which are predicting 123,000 more deaths.
How can I leave money to a charity in my will?
There are a couple of ways to leave money to a charity in your will. Both can be carried out through a legacy. You will have to:
- Name a specific charity or charities that will benefit in your will, or
- Let the Trustees of your will decide for you
When choosing your charity, it is advisable to write down their registered charity number to avoid any confusion. Some charities have similar names, and often their names change.
If you choose to let your Trustees decide for you, it is vital that you leave a clear record of your wishes to help them make a decision. This can be detailed in your will also.
Your gift to the charity can be:
- A cash sum
- A particular property or asset
- A share, or the whole, of your residuary estate
How can Percy Hughes & Roberts help?
At Percy Hughes & Roberts Solicitors, we have a team of dedicated wills solicitors who are ready to help you resolve your query or issue as quickly and effectively as possible. Perhaps you would like to leave a gift to a charity in your will and are unsure how to go about it?
If you need assistance with writing a will, leaving a gift in your will, making a change to a will, or simply want general advice, our Wirral Wills solicitors have a wealth of experience.