Charity donations and IHT

Briskly

Does anyione know if it possible to specify in a will that charities will get a residue gift only if the estate aftrer deductions exceeds the IHT threshold? I have a relative who's estate will be dwindling rapidly due to care costs and has to balance a desire to leave to family and friends with charities.  Leaving the total amount over the IHT threshold to charity would also presumably exempt the executor from the burden of the IHT form? Grateful for any thoughts.

Robertsnuffles55

I think that my grandmother did this when she passed away. 

Savvy_Sue

I don't think this will work, because: 

Exempt estates

These are estates where there can be no liability to Inheritance Tax because

the gross value of the estate does not exceed £3 million and there is no tax

to pay because one or both of the following exemptions apply:

• Spouse or Civil Partner Exemption

• Charity Exemption

No other exemption or relief can be taken into account.

You mention leaving bequests to family and friends, so this falls outside the exemption. 

https://assets.publishing.service.gov.uk/media/66f6bb42e84ae1fd8592eab5/IHT4002022_Notes.pdf

Keep_pedalling

Briskly said:

Does anyione know if it possible to specify in a will that charities will get a residue gift only if the estate aftrer deductions exceeds the IHT threshold? I have a relative who's estate will be dwindling rapidly due to care costs and has to balance a desire to leave to family and friends with charities.  Leaving the total amount over the IHT threshold to charity would also presumably exempt the executor from the burden of the IHT form? Grateful for any thoughts.

Will their estate be able to take into account the residential NRB or are you just looking at the standard NRB? If the former an IHT return will still be needed even if no IHT is due.

Briskly

The residential NRB wont apply as no wife or children. So no IHT return needed? Presumably it is ok to specify that the chaities only get any amount over the NRB? I suppose it has to be carefull worded in case the amount gets changed a t the drop of a hat by the Treasury?

Marcon

Briskly said:

Does anyione know if it possible to specify in a will that charities will get a residue gift only if the estate aftrer deductions exceeds the IHT threshold? I have a relative who's estate will be dwindling rapidly due to care costs and has to balance a desire to leave to family and friends with charities.  Leaving the total amount over the IHT threshold to charity would also presumably exempt the executor from the burden of the IHT form? Grateful for any thoughts.

It seems a bit strange to do 'estate planning' on the basis of what would make life easiest for the executor!

Sounds as if your friend needs advice from a competent solicitor, and needs to ensure the solicitor understands what the friend is trying to accomplish - which really shouldn't hinge on something which most people manage (an IHT form) without too much difficulty.