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As of April 2008, if your estate is worth more than £312,000, it will be subject to Inheritance Tax.
The first £312,000 of your estate will pass to your beneficiaries free of Inheritance Tax, while the remainder will be taxed at 40%. For example, if you leave an estate valued at £350,000, Inheritance Tax will be due at 40% on £38,000. So £15,200 will go to the Treasury and only £334,800 will follow your wishes. But if you leave instructions to give the Eisteddfod £25,000, the tax threshold is increased accordingly, the Eisteddfod gets all of the money you grant to it, and your estate only pays tax on £13,000: so only £5,200 goes to the Treasury.
There are two ways to leave money to a charity in your will. A Pecuniary Bequest leaves a set sum to the charity; for example, you might choose to leave £5,000 pounds to your chosen charity. A Residuary Bequest leaves a proportion (a percentage) of your estate to the chosen charity; for example, you might leave 5% of your entire estate to the charity.
Should you wish to remember the Llangollen International Musical Eisteddfod in your will, you might suggest the following wording to your solicitor:
Pecuniary bequest (a set sum)
I give the sum of ____ pounds to the Llangollen International Musical Eisteddfod (registered charity number: 504620) of Royal International Pavilion, Abbey Road, Llangollen, LL20 8SW, and the receipt of the Honorary Treasurer or the proper officer for the time being of the Llangollen International Musical Eisteddfod shall be a complete discharge to my Executors.
Residuary bequest (a proportion)
I give ____ % of the residue of my real and personal estate which I can dispose of by Will in any manner I think proper to the Llangollen International Musical Eisteddfod (registered charity number: 504620) of Royal International Pavilion, Abbey Road, Llangollen, LL20 8SW, and the receipt of the Honorary Treasurer or the proper officer for the time being of the Llangollen International Musical Eisteddfod shall be a complete discharge to my Executors.
However you decide to word your bequest, the important thing is to include the Eisteddfod’s full name, office address, and registered charity number as shown in the examples above.
How will we use your money?
Although bequests may sometimes be made for a specific purpose, it is far better for the Eisteddfod if gifts of any kind are made unconditionally. No one can predict how the Eisteddfod will develop in the future and so conditions on a legacy can sometimes mean that the money cannot be used at all.
If you would like your gift to be used in a specific area, we would like to respect your wishes. We suggest that you state your desire in your will as a preference and not a condition. That way we will have flexibility as times and circumstances change.
Executors
If you are an executor and there is a bequest to the Eisteddfod in the will you are executing, please send a cheque payable to Llangollen International Musical Eisteddfod care of the Honorary Treasurer at the Royal International Pavilion, Abbey Road, Llangollen, LL20 8SW.
Advice
At the time of writing (April 2008) charities are generally exempt from Inheritance Tax on bequests made to them in wills. However, please discuss this and all matters related to your will with your solicitor.
If you have any other questions please do not hesitate to call our Executive Director on 01978 862000.
Alternatively, if you are seeking general guidance on leaving a charitable legacy, visit the Remember a Charity website.
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