A gift to Farleigh Hospice can help your family in other ways
If the estate you leave behind is less that the nil-rate band (£312,000 in 2008/9) your beneficiaries will usually not have to pay Inheritance tax (IHT)
However, your estate may pay IHT of 40% on anything above the nil-rate band, subject to exemptions. Leaving all your assets to your spouse or civil partner will usually exempt your estate from IHT.
As a gift to charity is also exempt from IHT, your charitable gift effectively lowers the IHT on your estate.
That means you can support Farleigh Hospice and reduce the amount of tax your family or other beneficiaries will have to pay at the same time.
The nil-rate band is liable to change in line with Government policy. Current rates until 2011 are £325,000 for 2009/2010 and £350,000 for 2010/2011
How might Inheritance Tax affect my family?
It comes as a shock to many people to discover that they are liable for Inheritance Tax (IHT). But it is surprising how the value of your assets can add up, particularly if you own your own home.
In fact figures published in November 2005 show that the amount of IHT taken by the Government has doubled since 1997.
IHT is paid at 40% if your estate is worth more than the nil-rate band, £312,000 in 2009/9, so your beneficiaries will only keep £6,000 out of every £10,000 that you leave above this threshold.
Properly drawn-up Wills can reduce the IHT payable on your estate.
Your solicitor will be able to help you with these and other relevant issues and show you how to keep your Inheritance Tax as low as possible.