How are Legacies included in your Will?
There are two types of legacy:
- A percentage of your estate after the expenses and gifts are paid. The percentage is not impacted by inflation which means less chance of needing to update your Will.
- A fixed amount of money.
To include a legacy in your Will, we always recommend you use a solicitor. If you have already made a Will and would like to include a legacy then your solicitor can update your Will to include this or draft a codicil for you.
Should I make a Will?
Yes. If you do not then your estate will pass in accordance with the intestacy rules which could mean your estate would not pass as you would have wanted. It can also cause unwanted and avoidable tax liabilities. Although we always recommend you use a solicitor to make or change your Will, making a Will is very simple. You need to decide who to appoint as your executors (who would administer your estate), any guardian appointments for your children and who you would like to benefit from your estate.
I have already made a Will, do I need to make a new one to leave a legacy?
Not at all. It would just be a case of adding a Codicil (a written amendment to a person’s Will) to your original Will rather than redrafting it completely. Your solicitor can make this change for you.
I would consider a legacy to The Gordon Foundation but I do not want my family and friends to miss out. What should I do?
Of course, family and friends come first. All we ask is that you consider leaving us a share of whatever is left of your estate once your specific wishes have been carried out. If a large number of people gave just 1% of their estate the aggregate would be a significant amount of money. For the individual this could be a modest commitment which would not greatly alter family provision at all.
What is the £1m inheritance tax boost I have heard about?
This is a new initiative made in 2015 when the Chancellor announced a new “main residence allowance” which will effectively raise the inheritance tax threshold to £1m for married couples who leave their home to their children or grandchildren. The changes will be gradually introduced between April 2017 and 2020/21.