Common Questions About Legacies
How do I leave a legacy?
Including the Prostate Cancer Research Foundation in a will is a straightforward, easy and cost-effective way to support our work. It simply involves adding a short paragraph (clause) to your will.
Can I add the Prostate Cancer Research Foundation to my existing will?
If you already have a will, it is important that you keep it up to date. Fortunately, making changes to an existing will is very straightforward.
If you want to add The Prostate Cancer Research Foundation to an existing will, your solicitor simply attaches a written instruction, called a codicil. This must be done by your solicitor - don't make changes yourself as you may inadvertently invalidate your will. The codicil will need the signature of two independent witnesses.
If there are a number of changes you want to make, it may be better to make a new will, which your solicitor can help you with.
Do I have enough to leave a legacy?
A common misconception is that a legacy has to be an enormous sum of money. This is not the case. Any gift left in a Will, no matter how large or how small, is important to the charities you support.
The two main types of legacies that people leave are: residuary and pecuniary. A residuary legacy is when a person leaves a percentage of their estate to a charity. This means that, however much your estate is ultimately worth, you ensures your loved ones are looked after as well as giving a gift to your chosen charity. It also means you don't have to keep altering your Will as your circumstances change. A pecuniary legacy is a set sum of money. However, we advise that you consult your solicitor on what is best for your particular circumstances.
And of course the main thing is that any legacy – whatever its shape or size – is of enormous value to us.
If you would like to calculate what you think you may have left to leave please visit the Remember a Charity website to use their wealth calculator.
If the total value of your estate is over £312,000 (the threshold set for the 2008/2009 tax year), your beneficiaries will have to pay 40% inheritance tax on the amount over £312,000.
Recent reforms now allow married couples and civil partners to combine their tax allowances. This does not raise the inheritance tax threshold to £624,000 but it allows these couples to take advantage of their individual £312,000 thresholds. For example, under these new changes a widow's IHT allowance could be added to her husband's; this means that if their house value is less than their combined £624,000 allowance there will be no inheritance tax to pay.
Each individual's tax situation is different, and we always recommend consulting with your solicitor when making any changes to your Will. For more information regarding the changes to inheritance tax, please go to www.hmrc.gov.uk/cto/iht/tnrb-guidance.pdf.
How much will have to be paid?
If the total value of your estate is over £312,000, your beneficiaries will have to pay 40% inheritance tax on the amount over £312,000. This table shows how much tax they would pay at current rates:
Net value of your estate |
Tax payable |
Remaining value of your estate |
£350,000 |
£15,200 |
£334,800 |
£400,000 |
£35,200 |
£364,800 |
This means that if your estate is worth over £312,000, your beneficiaries will only keep £6,000 out of every extra £10,000 that you leave. If your estate is made up mainly of property, your relatives may have to sell this in order to pay the tax.
Your solicitors will be able to help you with these and other relevant issues and show you how to keep inheritance tax liability to a minimum.
What if my circumstances change?
One of the great things about a legacy is that it allows you to do just that. With a properly worded legacy, you can be safe in the knowledge that, should your circumstances change, your will automatically takes account of this. So you are able to look after yourself, friends and family while also knowing that you will still be doing something for your favourite charity if there is any money left over after you die.
I’m an executor of a friend/family members estate, can Prostate Cancer Research Foundation help?
Yes, please contact us on 020 7953 7178 or email info@thepcrf.org
