Where a gift is made by Will to a charity the
exemption will not be available if the gift is
not immediate. For example, where a testator
leaves their estate to a person on a life interest
with the charity as remainder beneficiaries. In thi s
case the charity exemption would not be available
on the testator’s death as the gift to the charity is
not immediate. On the life tenants death the charity
exemption will be available.
The gift cannot be defeasible i.e. capable of being
defeated on a future event. This may be a gift that
could be revoked, or where property is held by
trustees with an overriding power to appoint it to
someone other than the charity.
The gift must be of the whole of the deceased’s
interest in an asset or the whole of a lesser
share. The gift cannot be for a limited period.
For example, if a testator owns the freehold of a
property and gifts a half share of it to charity the
exemption will apply. If they gift a leasehold of the
property to the charity, or gift the whole property
for a limited time only, the exemption is lost.
The Society of Will Writers and Estate Planning
Practitioners have worked with CAF – The Charities
Aid Foundation for a number of years. They
support our members and their clients by
allowing a mechanism for leaving a lasting
charitable legacy. CAF are by definition a
charity but they can hold money on trust
for other charities. For information on
CAF and helping people give money to
the charities they care about, check out
the CAF website.
The Society of Will Writers
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