Has your Will been drafted so Inheritance Tax (IHT) will be due at 36% rather than 40% on your death?
The reduced rate of IHT applies when at least 10% of your net estate is left to charities. This is the value of your estate after deduction of the nil rate band, and it may be referred to as the ‘baseline amount’ in Wills drafted after 6 April 2012. A Will made before this date is unlikely to include a specific provision for 10% to go to charity.
Your Will doesn’t have to specify which charities should benefit and how much each will receive. Those details can be included in an expression of wishes, which is a private letter from you to your executors and is normally kept with your Will.