Advisers predict rise in charitable legacies following IHT changes

A majority of professional advisers believe recent inheritance tax (IHT) developments will increase the number of charitable legacies, according to a recent survey from the Remember A Charity consortium.

The research found that more than six out of ten advisers (65 per cent) expected charitable incentives to become more important to their clients, as more estates became liable for IHT following the chancellor’s announcement last autumn that thresholds would remain frozen until 2030.

A similar proportion of respondents (60 per cent) said they had been receiving more requests for estate planning advice since the announcement of the IHT changes, while nine out of ten believed tax planning would become more important.

Commenting on the findings, Remember A Charity director Lucinda Frostick said: “Even though the reasons for giving extend far beyond tax incentives, these IHT changes make the legacy conversation more relevant to a wider group. They present an ideal opportunity for advisers to raise the topic, building understanding of legacy giving and inspiring more clients to support the causes they care about.”

The survey found that almost eight out of ten (77 per cent) of solicitors and will-writers would “always or sometimes” proactively raise the subject of charitable giving with their clients. In addition, it revealed that 21 per cent of wills written through a solicitor or will-writer now included a donation.

Tanya Watson, a chartered tax adviser and senior director at Alvarez & Marsal Tax LLP, said: “The changes to IHT are prompting a fundamental reassessment of estate planning strategies, particularly among clients who may not have previously been impacted. Charitable giving can be a highly effective planning tool, and these changes provide a timely reason for advisers to revisit legacy plans with clients who may not have considered this route before.”

The Remember A Charity survey was based on interviews with 237 solicitors, will-writers and independent financial advisers.