Legacy Week 2023 JEP article

24th August 2023

Mental health charities are seeing a significant rise in legacies since the pandemic, a 127% rise since 2020 in fact. Homeless and housing charities are also receiving more pledges. In recent years cancer, animal welfare and military charities have consistently received the most pledges. In general, legacy giving has risen by 43% over the past decade.

For a free 30 minute consultation with Simon Lofthouse call us on 01534 733030.

It is easy to leave money to charity in your Will but there are some things to consider. If you are too specific about the way the charity has to spend money they may be thwarted in their work. If the charity changes its name they could find it hard to access the funds. If you leave Jersey immovable property directly to a charitable trust it will fail. We can provide invaluable advice to mitigate these types of issues. 

Willanthropy is a term coined by Remember A Charity. Being philanthropic in your Will makes a crucial difference to many charities. Hospice, Durrell and the JSPCA are some of the principal beneficiaries in Jersey but schools like Victoria College also rely on gifts from alumni. Corbett Le Quesne have drafted a Legacy Document charities can use to help potential donors understand what their options are.

There are various ways to leave your money to charity including:

1. A Residuary Bequest is a whole or percentage share of everything you own apart from your immoveable property in Jersey. Any other bequests, gifts, taxes and costs are paid and then the rest is paid to the charity in accordance with the Will. As this is not a fixed sum, the value will not be affected by inflation.
2. A Pecuniary Legacy is a fixed sum of money. This legacy can be affected by inflation and the value may decrease over time from when the will was originally made. To mitigate this issue you can specify that the value of the gift should increase with inflation which would safeguard the value of your gift.
3. A Specific Legacy or Gift in Kind is a gift of something of value, or specific personal possessions such as property, stocks, shares, works of art, antiques etc. The form of the wording in your will is the same as for a pecuniary gift, except the gift itself is specified instead of a cash sum.
4. Leaving Jersey immovable property usually requires a separate Will with strict formalities which must be complied with.
5. A Reversionary Legacy involves leaving your assets to trustees so that the beneficiaries can enjoy the income during their lifetime, with the whole or a portion reverting to a charity on their deaths. 

You should consult your legal and tax adviser for advice in relation to the provisions of your Will. In general, gifts made to charity are exempt from stamp duty in Jersey and inheritance tax in the UK but this should be checked if it is a concern. We do not have inheritance tax in Jersey.

We offer free 30 information sessions so if you need some advice please call us on 01534 733030 or e-mail enquiries@corbettlequesne.com.

Sources:

Pledged legacy donations to homelessness & housing charities up 75% YOY - UK Fundraising

Legacy giving up 43% in a decade - UK Fundraising

Willanthropy, the act of leaving a gift to charity in your Will (rememberacharity.org.uk)