Residuary legacy – If you wish to leave a share of your estate to St Edmund’s after specific gifts to family and friends you will not have to specify a sum or take into account inflation. The value of the share you leave to the school will be exempt from inheritance tax. Here is a useful form of words…
“I give the whole (or percentage share, or fraction) of the residue of my estate absolutely to St Edmund’s College (registered charity number 311073), Old Hall Green, Ware , Hertfordshire SG11 1DS, hereinafter called “the Charity”, such sum to be applied for the general purposes of the Charity. I direct that the receipt of the Director or other authorised officer for the time being of the Charity shall be a good and sufficient discharge to my Executors.”
Gift of a specific sum – a useful form of words if you would like to leave a specific sum of money to St Edmund’s…
“I give the sum of £…… (in figures and words) to St Edmund’s College (registered charity number 311073), Old Hall Green, Ware, Hertfordshire SG11 1DS, hereinafter called “the Charity”, such sum to be applied for the general purposes of the Charity. I direct that the receipt of the Director or other authorised officer for the time being of the Charity shall be a good and sufficient discharge to my Executors.”
Gift in kind – a useful form of words if you would like to leave items such as property, jewellery, antiques, works of art or stocks and shares to St Edmund’s. These gifts would be excluded from the valuation of your estate and not liable for inheritance tax.
“I make the following charitable gift absolutely to St Edmund’s College (registered charity number 311073), Old Hall Green, Ware, Hertfordshire SG11 1DS, hereinafter called “the Charity”, (full description of the item and its location) with the full power to realise such assets and apply the proceeds to the general purposes of the Charity. I direct that the receipt of the Director or other authorised officer for the time being of the Charity shall be a good and sufficient discharge to my Executors.”
Codicil to an existing Will – can be used to make an addition or alteration to your existing Will. If you wish to include a gift to St Edmund’s you can do so by adding a Codicil. Once completed, the Codicil should be kept with the original copy of your Will. It is strongly advised that the document is witnessed in the presence of your solicitor.
Other forms of legacy you may wish to consider…
Reversionary legacy – you can leave your assets to trustees so the beneficiaries can enjoy the income during their lifetime, with the whole or a portion reverting to St Edmund’s on their death. For
example, it could enable a spouse or friend to continue living in a house until he or she dies, with the house then passing to St Edmund’s. If the interest for life is granted to a spouse then, generally speaking, there will be no Inheritance Tax to pay on the bequest on your death. Because St Edmund’s is a charity there will be no Inheritance Tax to pay when the life interest comes to an end.
This is a useful way of providing for your family first and then benefiting St Edmund’s.
Conditional legacy – provides for the eventuality that if none of your named dependants survive you, your estate will be left to other named beneficiaries including perhaps St Edmund’s College.
Deed of variation – as the beneficiary of a Will, you may wish to transfer the whole or part of your inheritance to the College using a deed of variation. Amounts transferred in this way become free
from inheritance tax.
These notes are for guidance only. Professional legal advice is always recommended.