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Will charity pay tax on my gift if I make a bequest?
If I wish to leave a gift in my will to a cause such as a cancer support association or a church, what tax will be deducted when the gift is payable? N.H.
If the organisation is eligible to receive bequests, then the gift will be tax-free.
Watch out, however, as many associations are not set up to receive bequests (legs).
Generally speaking, unless they have special permission, only associations and foundations recognised as being d’utilité publique (broadly speaking, what would be considered a charity in the UK) are allowed to accept them.
They must be non-profit-making, in the general interest, and with a certain level of support and financial means.
In the case of a church, for example, an individual church might not be set up to accept bequests but a structure on the level of a diocese may be.
It would be best to speak to the bodies you have in mind about whether or not they can accept your gift and how you should word the bequest.
Reader's query answered byHugh MacDonald
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The information here is of a general nature. You should not act or refrain from acting on it without taking professional advice on the specific facts of your case. No liability is accepted in respect of these articles. These articles are intended only as a general guide. Nothing herein constitutes actual financial advice