Avoid IHT with Charitable Donations
Added: (Fri Mar 13 2009)
In recent years Inheritance Tax, or IHT, has proved itself to be even less popular than the notorious Poll Tax was in the 1990’s. A simple search on the internet for ‘avoiding inheritance tax’ will deliver over 300,000 pages of advice on the subject. That’s not to say that everybody is trying to avoid IHT, I’m sure there are plenty of people who have no issues with a proportion of their money going back into society, however, it’s important for many people to have a choice where their money goes.
One way of exercising this choice is by giving money to charity, as all charitable gifts to UK registered charities are free from inheritance tax. By giving a sum of money over and above the inheritance tax threshold to your favourite charity can mean that IHT can be totally avoided. It may come as no surprise that monetary gifts to UK political parties are also exempt from inheritance tax!
Alternatively, monetary gifts can also be made to some national institutions other than the government’s back pocket such as the National Trust, universities, museums churches, children’s homes, community centres and a range of other non profitable groups. These donations can be made during ones lifetime or left in ones last will and testament, either way, your assets will go exactly where you want them to and inheritance can be avoided.
Andrew Hall, Marketing Manager of Trust Inheritance had this to say:
“Many people are unaware of the many types of groups and organisations they can make donations to whilst avoiding inheritance tax. Those who have assets over and above the current IHT threshold [£312,000 for the 2008-09 tax year] can, if they wish, leave charitable gifts in their last will and testament to a local scouting group or an amateur sports association. However the guidelines for exemption from inheritance tax in such cases do become more stringent as rules are laid down for what the donation can and cannot be spent on. It’s advisable to seek legal advice if you’re unsure whether your donation qualifies for inheritance tax relief when writing a will.”
To find out more about avoiding inheritance tax by making donations to charity or community groups, visit Trust Inheritance at http://www.trustinheritance.com or call 08000 978012.
Submitted by:Trust Inheritance Find out more.