CAF Charitable Legacies

Tax-effective giving from an inheritance

A Deed of Variation to a Will is a flexible, tax-effective way to create a charitable giving fund from a legacy that you have received.

Talk to our team

Creating a deed of variation to a will

If you have received a legacy, you may decide that you would like all or a part of it to be donated to charity. However, you may not want to donate the money all at once and you may want some time to choose which causes to support. In these circumstances, we can help.

Creating a Deed of Variation to a Will in favour of CAF enables you to arrange a philanthropic fund out of that legacy. You can distribute it to single or multiple causes either immediately or over a period of time.

A Deed of Variation to a Will, also known as an Instrument of Variation, is a document that can change the distribution of an estate, mostly for tax purposes. The Deed must be executed within two years of the date of death, everyone affected by the change to the Will must agree and no-one can be compensated for the amount they give up. The Deed must also be signed by all of the executors and by those beneficiaries affected by the changes being made. 

Want to learn more about donating a legacy to charity?

Download our brochure

 

Create a flexible gift in 3 simple steps

1. Draw up your Deed of Variation to the Will in favour of CAF


CAF provides a letter stating that we have seen the Deed, which you can send to HMRC to arrange any tax refund due. 

2. Decide on your preferred way to give

3. Send the money to CAF

We will place this in your chosen fund for CAF to give to the charities of your choice when you are ready, subject to the relevant Terms and conditions of business.

Contact us

Important information

Whilst a Deed of Variation to a Will does not avoid tax, it does help you take advantage of the reliefs that are available. Donating a legacy to a charity can help reduce liability to Inheritance Tax and, in some cases, Capital Gains Tax.

Furthermore, since 6 April 2012, if you are able to redirect 10% or more of the deceased person’s net estate to charity, the rest of the estate can benefit from a reduction in the Inheritance Tax rate from 40% to 36%.

To enable you to work out how much you would need to donate to charity to benefit from this reduction, HMRC has helpfully provided a calculator here.

The wording that you will need to include in the Deed of Variation for the charitable gift to qualify for the reduced rate of 36% is available here.

If you already have a Charitable Trust or a Charity Account, you can use a Deed of Variation to a Will to create a charitable legacy to increase the value of your fund.

Welcome to the Charities Aid Foundation

We help donors to give more impactfully and charities to build their resilience so they can do more of their life-changing work.

Personal giving From one-off donations to long-term giving, or designing your personal philanthropic strategy, we work together to help you realise your giving ambitions. Corporate giving You have the vision for making a difference. So do we. We help you plan how to give based on your goals. Services for charities Helping your charity or social enterprise become more resilient. Insights Discover the latest insights for donors and charitable organisations to help create a greater impact About us We are a leading charity, working at the centre of the giving world. We help donors to give more impactfully and charities to build their resilience so they can do more of their life-changing work. Donate  
 
 
 

Personal giving

From one-off donations to long-term giving, or designing your personal philanthropic strategy, we work together to help you realise your giving ambitions.

DISCOVER OUR PERSONAL GIVING SOLUTIONS

Corporate giving

You have the vision for making a difference. So do we. We help you plan how to give based on your goals.

DISCOVER OUR CORPORATE GIVING SOLUTIONS

Services for charities

Helping your charity or social enterprise become more resilient.

DISCOVER HOW WE SUPPORT CHARITIES

Insights

Discover the latest insights for donors and charitable organisations to help create a greater impact

Explore

About us

We are a leading charity, working at the centre of the giving world. We help donors to give more impactfully and charities to build their resilience so they can do more of their life-changing work.

Find out more about CAF