August 12, 2026
For many of Talis IFA’s clients, estate planning is about more than passing on wealth; it’s about creating and shaping a legacy that reflects their values. Charitable gifts in Wills have long formed part of estate planning, and still offer a powerful combination of impact and tax efficiency.
7-13 September 2026 is Remember A Charity Week, an annual reminder of how legacy gifts are vital to the UK charity sector.
Below is Talis IFA’s practical guide to how charitable gifts work, why they’re tax-efficient, and what to consider when balancing philanthropy with supporting your loved ones.
Why charitable gifts belong in your estate planning strategy
Estate planning is ultimately about control: deciding who benefits from your wealth, how much they receive, and how efficiently your estate is structured. Charitable gifts can support all three aims.
Charitable gifts left in your Will are completely exempt from Inheritance Tax (IHT). More strategically, if you leave at least 10% of your net estate to charity, the IHT rate on the remainder of your estate drops from 40% to 36%. For some estates, this can mean that:
This makes charitable giving a valuable tool in tax-efficient estate planning.
Lifetime charitable gifts can also be a tax-efficient way of reducing the overall value of your estate, and/or minimising your annual tax bill:
This allows you to support causes you care about during your lifetime and potentially reduce the IHT liability on your estate after your death.
Increasing numbers of people want their estate plan to reflect what’s important to them, supporting charities who have helped them or their family, perhaps in a time of poor health, or support local causes and community organisations.
Including charitable gifts in your Will can be a powerful way to express your values and create a legacy that lasts beyond your lifetime.
Practical considerations: getting the balance right
While charitable legacies can be hugely beneficial, careful planning is essential to avoid unforeseen circumstances later:
Leaving a fixed sum (e.g., £50,000) may seem straightforward, but it can create problems if the value of your estate changes. If the estate is smaller than expected, a large fixed-amount charitable gift could unintentionally reduce what is left for your other beneficiaries.
Using percentages rather than fixed amounts keeps gifts proportionate and avoids accidental exclusion of your loved ones.
Let’s look at a recent example:
When Jonathan updated his Will at 76, he planned to leave £40,000 to a heart charity. It felt simple and generous. But his Talis IFA suggested switching to a percentage gift instead, in case things changed.
With a current estate of £500,000, and two children as main beneficiaries, there was potential for care costs or market changes to reduce his estate.
If Jonathan left a fixed £40,000 and his estate fell to £300,000, the charity would still receive £40,000, but his children would share £260,000, far less than he intended.
If he left 10% instead, and his estate fell to £300,000, the charity would receive £30,000, his children £270,000, and the gift would stay proportionate and fair.
The added bonus of leaving 10% to charity is lower IHT, as the estate also qualifies for the reduced 36% IHT rate, meaning that the estate will pay less tax overall and both the charity and Jonathan’s children will receive more.
It’s important to be aware that charities (especially larger national organisations) actively enforce legacies through the courts when necessary. Their trustees have a legal duty to ensure the charity receives what it has been promised.
Clear drafting and balanced planning help avoid your executors and beneficiaries having to deal with disputes later.
Because charitable legacies sit at the intersection of tax planning, estate planning, and family dynamics, we always recommend that, as well as working with a Talis IFA to structure gifts tax-efficiently and align them with wider wealth management, you should seek legal advice. It’s important that your Will is clearly and correctly drafted, and that any charities are properly identified.
FAQs: Charitable Gifts in Your Will
Many of our clients have obviously been thinking carefully about charitable gifts before talking to their Talis IFA, and similar questions come up regularly. If you’re starting to explore the idea, here are our answers to some of the key questions you might be pondering:
Do charitable gifts reduce the amount my family receives?
Not necessarily. Because charitable gifts are exempt from IHT, and may reduce the IHT rate on the rest of your estate, your family may receive almost the same amount, while the charity benefits significantly.
Is it better to leave a fixed amount or a percentage?
A percentage is usually safer. It keeps your gift proportionate to the size of your estate and avoids unintentionally disadvantaging family members if your estate value changes.
Can charities challenge a Will?
Yes. Charities have a legal duty to enforce legacies left to them. If a Will is unclear or family members dispute the gift, charities may take legal action to ensure they receive what was intended.
Do lifetime gifts to charity affect Inheritance Tax?
Lifetime charitable gifts are immediately exempt from IHT, do not count towards your nil rate band (NRB), and do not fall under the seven-year rule. They may also reduce your income tax bill through Gift Aid.
What is the 10% rule?
If you leave 10% or more of your net estate to charity, the IHT rate on the remainder of your estate drops from 40% to 36%. This can create a tax-efficient balance between charitable giving and family inheritance.
Do I need professional advice?
Yes. Because charitable legacies involve tax planning, estate planning, and family considerations, it’s important to take both legal and financial advice to ensure your wishes are carried out smoothly.
For more information, download our Talis IFA guide for the 2026/26 tax year: Two Certainties
A thoughtful legacy
However modest, or substantial, including charitable gifts in your lifetime financial planning and estate planning allows you to make a lasting impact while benefiting from potentially significant tax reliefs. As Remember A Charity Week reminds us, even a small percentage of your estate can make a significant difference.
If you are thinking about your legacy, but are uncertain about where to donate, a grant-making organisation like a local community foundation can be a good place to start. From our head office in Ashford we have developed a close connection with the Kent Community Foundation. KCF helps people to give strategically across Kent, and their understanding of charities and community groups helps to connect you with causes that align with your values.
How Talis IFA can help
At Talis IFA, our ‘life first, money second’ approach is based on understanding your objectives for your life, and your legacy. We’ll help you to gain clarity about what you want your wealth to achieve – both for your loved ones and for the causes important to you – and help you create a tax-efficient estate plan that maximises the benefits of your wealth.
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