In Memoriam
Tax information
All gifts from the Good Gifts Catalogue can be made as 'in memoriam' gifts. They are gifts to charity (exempt gifts); so do not incur inheritance tax (death duties).
You can include a Good Gift in your will.
Giving an In Memoriam gift through the Good Gifts Catalogue can save 40% inheritance tax. So, for example: endowing a village library would cost the estate £720 (not £1,200); sponsoring a football team would cost £180 (not £300); and planting a drift of daffodils would cost £135 (not £225).
Your heir(s) can make a gift, in your name, after your death. If they do so before completing the IHT 200 they can simply enter it under Exemptions and Reliefs.
You can make the Gift within 2 years of the death by drawing up a deed of variation and submitting it to the Inland Revenue: you will need to refer to the Inheritance Tax Account, the IHT 200 and its notes, the IHT 210. Within the IHT 200 there is a schedule D1 for the Will and accompanying notes. This is where any claim for charity exemption needs to be claimed and then those nice people at the Inland Revenue will refund 40% (the inheritance tax paid).
Many estates do not pay inheritance tax and a variation which gives a gift to charity by such estates will not produce a change in the tax position. You only need to submit the deed of variation to the IR if there are going to be immediate inheritance tax consequences.
The Inland Revenue has very helpful publications:
* CGT/ FS1 - Capital gains tax. A quick guide
* IOV2 - Instrument of variation (PDF 61K)
The following link may also be useful:
* http://www.hmrc.gov.uk/cto/customerguide/page2.htm.
How to account for the gift to the Inland Revenue
When completing the account for an estate you complete the IHT 200 for the Inland Revenue. The form has a section headed 'Exemptions and Reliefs'. Enter the details of the gifts in this section.
Inheritance tax forms are available online here: www.inlandrevenue.gov.uk/cto/forms3.htm
Probate and Inheritance Tax Helpline: 0845 30 20 900 (The Inland Revenue helpline really is helpful. Contact them on this number and they will guide you through the form filling).
Help line
If you want more information or help choosing appropriate gifts, just call, we’re here for you, 0207 794 8000 or email help@goodgifts.org