Legacy: Gifting through your Will

Money gifted to EMMS International in this way helps us to develop our work of medical mission and continue to 'preach the gospel and heal the sick'.

What benefit is there if I leave a gift to EMMS International in my Will?
Making a will is a wise thing to. It shows that you have a care and concern for your loved ones. It gives you an opportunity to help people in need… as well as reducing your tax liability. Leaving a gift in this way to EMMS International, a recognised charity, means that it is exempt from Inheritance Tax.  Legacies, large and small, are welcomed.

Is there a minimum amount I need to give?
EMMS International is delighted to receive gifts of any amount. There is no minimum amount. You do not need to be wealthy to leave a gift in your will. EMMS International can use gifts of any amount to help others. Each year people from all walks of life give part of their estate to EMMS International. Recent gifts left to us in Wills have been from £100 upwards.

How can I keep my tax liability as low as possible?
The Inland Revenue will charge Inheritance Tax at 40% on your estate if the “taxable value” is more than the threshold level set by the Government. This figure may vary from year to year but it should be noted that the “taxable value” of your estate includes gifts made in the seven years before death, but not money passing to your spouse or other exemptions.

There are two ways in which you can reduce your tax liability either by making a gift during your lifetime or leaving a gift in your Will:

1)  Gifts made in your lifetime
If you give money, objects or property etc. at least seven years before your death and you do not benefit from this, it is exempt from Inheritance Tax. Gifts made within seven years of death will be subject to some Inheritance Tax.

Gifts made to a charity at any time before your death are tax-free. A tax-efficient way to make such a gift is by Gift Aid.

2)  A gift made through your Will
If you leave a gift in your Will to EMMS International, a registered Scottish charity, the gift is exempt from Inheritance Tax.

Such a gift is subtracted from the net value of your estate, leaving a smaller sum liable for tax. This means that your family would pay less tax. It also means that money which would otherwise go to the Inland Revenue can be used by those who really need it.

For example: Mrs Smith died in May 2006.  She left a legacy of £40,000 and the rest of her estate to her daughter.  The total value of the estate was £500,000.  From the estate is deducted:

Outstanding household bills | £1,500
Funeral expenses | £3,500
Legacy to charity | £40,000  (a total of £45,000)
Net value of estate | £455,000
Inheritance tax threshold | £285,000* (nil rate band 06/07)
Balance of estate chargeable | £170,000
Inheritance Tax @ 40% | £68,000

Without the legacy to charity of £40,000, further Inheritance Tax of £12,000 would be payable.

* See the HMRC website for the most up to date threshold

Are there other benefits in making a Will?
Sadly, many people never get round to making a will and die intestate. That means that any surviving spouse will have rights to your estate but only up to certain financial limits and the courts may have to decide who gets what from your estate and it may not be what you had in mind. Making a will brings peace of mind.

How do I make a Will?
The easiest way is to consult a solicitor, rather than writing your own or buying a ready-made Will from a stationer. This is not usually expensive. If you do not know a solicitor ask someone you trust for a recommendation.

Is there anything I need to do before seeing a solicitor?
Since making a Will is time for planning ahead, you should decide how you want to allocate your estate. You should do this in a way that preserves the proportion each beneficiary will receive. You may also want to make gifts of specific belongings.

Your solicitor will ask you how much your estate is worth. Simply add up the value of your assets (which may include, for example, house, contents, objets d’art, bank accounts, investments, car etc.) and subtract all your debts and other liabilities (e.g. bank overdraft or loan, mortgage, credit card amounts, hire purchase commitments etc.).

It will save time and money if, when you visit your solicitor, you take a list of names and addresses of people and organisations who are to benefit from any gifts you want to make.

What will a solicitor do?
Apart from discussing your estate and who you want to make gifts to he will ask you who your executors are. These are the people who are responsible for making sure the instructions in your will are carried out. An Executor can be a beneficiary in your will. People often choose a relative or close friend, together with a ‘professional’, such as their solicitor.

Your solicitor will then prepare the Will for you to sign. When you sign it you must have two witnesses who should both be present when you sign. Witnesses, or their spouses, should not be beneficiaries in the Will.

What happens if I want to change my Will later?
If your circumstances change, or you change your mind, your Will can be varied by writing a codicil - a legal statement of your further intentions which is kept alongside your will.

Where should I keep it?
You may wish to ask your solicitor, or your banker, to keep your will. In England and Wales you can lodge it at the Central Probate Office for a small fee. You should keep a copy yourself, along with a note of the whereabouts of the original.

What does EMMS International do with money gifted through someone's Will?
Legacies are invested and the income used to fund the activities and projects of EMMS International on a continuing basis. This means that gifts made in this way can go on working, long after they were made, and have a lasting benefit in places like India, Malawi or Nepal.

How do I make sure my gift goes to EMMS International?
EMMS International suggests that the following wording should be used in your Will:

--- Start of Will template ---

a)  For the residue, or share of residue, of an Estate:
Subject to the payment of my just debts, funeral and testamentary expenses and any legacies I give [specify the proportion e.g. the whole, half, one quarter etc.] of the residue of my estate, both real and personal, to

EMMS International (a Scottish Charity No. SC 032327)
7 Washington Lane
Edinburgh
EH11 2HA

for its charitable purposes. I further direct that the receipt of the Finance Director or other proper officer of EMMS International for the time being shall be a full and sufficient discharge for my Executors in respect of the said legacy.

b)  For a fixed sum legacy:
I give (or I bequeath) the sum of £____ Sterling (free of duty and taxes) to

EMMS International (a Scottish Charity No. SC 032327)
7 Washington Lane
Edinburgh
EH11 2HA

for its charitable purposes. I further direct that the receipt of the Finance Director or other proper officer of EMMS International for the time being shall be a full and sufficient discharge for my Executors in respect of the said legacy.

c)  For a legacy in the form of tangible assets:
I give (or I bequeath) the following objects or tangible assets (free of duty and taxes) to

EMMS International (a Scottish Charity No. SC 032327)
7 Washington Lane
Edinburgh
EH11 2HA

for its charitable purposes. [List here the assets being bequeathed____].

I further direct that the receipt of the Finance Director or other proper officer of EMMS International for the time being shall be a full and sufficient discharge for my Executors in respect of the said legacy.

I would like to leave a gift to EMMS International in my will.

--- End of Will template ---

If you have any questions, please contact us on 0131 313 3828