Legacies - What do you see?
Go BackThe Future… Making a Difference
The work we do in pioneering new ways of enabling people who are blind or partially sighted to achieve future independence costs over £6 million each year. Some of this cost is covered by statutory funding however over £1 million each year has to be sought from other sources. Legacies provide us with the means to look beyond our present challenges and plan for the future.
Pledging a gift to RNC in your Will costs nothing in your lifetime but it will make the world of difference to the lives of hundreds of people who are blind or partially sighted.
This section of the web site takes you through the practicalities of making a provision through a Will.
- The Importance of making a Will.
- Things to consider when making a Will.
- The various types of legacy.
- Legal terms made simple.
- Inheritance tax.
- Pledging.
The Importance of making a Will.
Many people are put off making a will, because they feel they are not at 'that' stage in their lives yet. However no matter what age you are or what your personal circumstances may be, - making a will is a vital part of planning for the future of your loved ones. It is also the only real way of guaranteeing your wishes are respected after your death.
If you do not make a valid Will the State decides what happens to your possessions, regardless of any wishes you may have had. There are also financial benefits linked to making a Will. Your family can be spared any unexpected legal bills and, dependent upon the value of your estate, you can ensure that the minimum amount of tax is payable.
If you have already made a Will, don't forget it, you should check that it still reflects your wishes and the value of your estate. Circumstances also change; the birth of children or grandchildren, marriage or indeed divorce can result in the need for amendments to be made.
Things to consider when making a Will.
When you make a Will, you have to consider :
- how much you are worth
- who you want to remember
- who will carry out your wishes
The value of your home, your savings, your pension plan and life assurance all add up. Calculating all of these things is especially important should your estate exceed the sum at which inheritance tax becomes payable.
It is a common myth that your spouse or partner will inherit everything automatically should you die. In fact, this is only the case if your estate is under a certain value or if you have no other relatives who survive you. If you are unmarried, but have a partner, they could be entitled to nothing if your wishes have not been stated in a legally binding document.
Children under 18 should always be considered as their future will rest in your hands should there be no surviving person with parental responsibility. You can choose a guardian, so that you have peace of mind about their future happiness and security.
Pecuniary legacy
This means a specified amount of money left to your chosen beneficiary. Rises in inflation affect the value of a pecuniary legacy over time and can reduce its final value.
Residuary legacy
After remembering relatives and friends with any specific gifts, you may want to leave some or all of the residue to charity. This is probably the best way of helping RNC. We would not receive any money until all of your other legacies have been met. A residuary legacy is not affected directly by inflation, so your chosen beneficiary will receive the maximum value from your generosity.
Conditional legacy
Under this kind of legacy, your chosen charity would benefit if any or all of your beneficiaries die before you.
Reversionary legacy
You could choose to leave something, such as a house, to a partner or friend for their use during their lifetime. Afterwards, the value would be passed to your selected charity.
Specific legacy
This refers to a specific item such as a piece of jewellery or property left to the beneficiary.
Administrators
The people who manage and distribute your estate if you don't make a Will
Beneficiary
Anyone who receives something from your Will
Codicil
A change to an existing Will, which must comply with the same formalities as the Will
Crown
Where the contents of your estate if you have no next of kin and did not make a Will, will go. In reality this means the Treasury.
Estate
The total of what you leave
Executors
People you ask to look after your affairs according to the terms of your Will
Legacy / bequest
A specific amount of money or an item left in your Will
Intestate
Someone who dies without having made a Will. A partial intestate is someone whose Will does not deal with all of his or her estate
Probate
The procedure whereby it is formally established whether you left a valid Will and who your administrators or executors will be.
Residue
What's left of your estate after payment of debts, expenses and specific legacies.
Testator
The person making the Will.
Gifts or money given to registered charities are free of inheritance tax (IHT). Any inheritance tax payable is calculated on the net estate after the value of your gift has been subtracted.
If you have an estate large enough to pay IHT, then you can limit or avoid IHT, by making a gift to charity. This allows you to direct where you would like the money to go, rather than give it to the State through the tax system.
You can also reduce the amount of inheritance tax payable by making gifts of your possessions during your lifetime. For example you may have jewellery you would like to pass on to children or grandchildren. Provided you live for seven years after making the gift, there will be no inheritance tax to pay.
Inheritance tax is charged at 40% on the value of estates over £242,000 (2000 tax year), although there is no tax charged if property is transferred to a spouse.
It is advisable to take legal advice with regard to inheritance tax as rules may change.
Pledging your intention to remember RNC in your Will is only a statement of your intent. It does not legally bind you or prevent you from changing your mind in years to come. We all know circumstances can change.
It does however, help us to get to know our supporters in their lifetime, and likewise you can get to know us better. You can choose to receive news about what we are currently doing, student success stories and ongoing developments.
We would like to acknowledge people's pledges of support with a tactile wall in the College. The wall would be made up of individual tiles designed and made by students in art classes. As the number of pledges grows the wall will become a beautiful piece of art for everyone who comes to RNC to enjoy.
Select this link for the on-line Pledge Form
Mike Nicholson - Kent "Before coming to RNC I really was just 'treading water' with no real direction in my life. The change couldn't be more dramatic now as I've just been like a sponge soaking up everything that is available to me here. I've learned an immense amount of I.T. skills and got involved in all sorts, including organising a team to put musical performances on. This in particular is something I really enjoy and I hope in the near future to have a career in event management or the theatre - in fact any form of live sound including radio production. RNC has given me the skills I need and after meeting people here with more severe issues than my own, I have been inspired to push myself to do the best I can." Michael is 46 and registered partially sighted. He has Optic Atrophy.
