We are currently living in unprecedented times and the Covid-19 outbreak has ‘frozen’ our economy and the day to day life as we know it.
It is no surprise that Legacy Foresight’s latest report forecasts a 27% fall in the charities’ income from Will legacies due to the Covid-19 crisis.
Following on from past years’ steadily increase, Legacy Foresight initially predicted an increase in the total legacy income in 2020 from the £3.2 billion in 2019. However, the position has quickly changed at the beginning of March when Legacy Foresight predicted a fall of 9% on the year before instead of an increase.
Two months’ later, Legacy Foresight have revised their position and forecast a fall anywhere between 8%-27% on the basis of lower gift values due to the weakening economy as well as a higher number of deaths.
We have piloted a new scheme in January 2020 to offer free Wills in return for a donation to charity and we are delighted to report that since the launch of our scheme to date we have raised a total of approximately £2.7 million in combined pledged charity donations, legacies and estate residues.
This is an extraordinary figure that would support local charities during the Covid-19 crisis (i.e. donations) as well as its aftermath (i.e. legacies and estate residues) and we would like to thank our clients for helping us achieve such an amazing figure and for supporting charities across the UK.
Whilst our clients are free to amend their Wills at any stage and the sum raised to date is a pledged figure rather than actually received, it highlights how important it is to consider remembering a charity when making or amending a Will.
By participating in our scheme, our clients are not only ensuring their loved ones are taken care of financially on death, they are also benefiting many thousands of charities across the UK who are in need. In addition, the gift to charity is tax-free and can reduce the amount of inheritance tax payable on the remainder of their estate-i.e. if they give at least 10% of their taxable estate to charity, the inheritance tax rate for the rest of their estate drops from 40% at 36%.
Our free Wills scheme is ongoing and despite the Covid-19 crisis we hope to report increased numbers by the end of the year. To take part in our free Wills scheme, call 01206 700113 or email [email protected].