How do i arrange a legacy?

Whether you are having a Will drawn up for the first time, or would like to amend an existing Will, we advise that you visit a solicitor. A Will is a legal document, and it is important to make sure that it complies with certain legal formalities to make sure that it is valid. Visiting a solicitor may not be as expensive as you may think - many solicitors will agree to prepare your Will for a fixed fee.

If you do not have a solicitor, it is a good idea to ask friends and family if they can recommend one.  Otherwise, you can find a solicitor specialising in Wills in your area by visiting the Law Society website at:

www.lawsociety.org.uk/choosingandusing/findasolicitor.law

WHAT TYPES OF LEGACY ARE THERE?

There are four main types of legacies that you can include to The Exchange in your Will:

1. You can leave a legacy of a sum of money (such as £100) (a pecuniary gift) or you can leave an item like a painting, shares or a property (a specific gift).

2. You can leave a residuary gift to The Exchange.  Your residuary estate is what is left over of your assets after your debts, any inheritance tax, funeral expenses and so on have been paid and after any legacies of sums of money or items that you have included in your Will have been paid. A residuary gift is a gift of the whole or a percentage of your residuary estate.

3. You can leave a contingent gift. This is a gift to The Exchange on the condition that a certain event must occur before funds are distributed to it.

4. You can leave a reversionary gift. This is a gift to The Exchange which takes effect after a prior gift, e.g., a gift of your house to your spouse to live in during his or her lifetime but which passes to The Exchange on his or her subsequent death.
   

WHAT ABOUT UK INHERITANCE TAX?

Inheritance tax is the tax that is payable on your estate on death if the value of your net estate (your estate after deduction of certain liabilities such as debts and funeral costs) exceeds the inheritance tax threshold. Any legacies that you leave to charity, such as The Exchange – which is a charitable community benefit society recognised by HMRC as a charity for tax purposes - are free of inheritance tax so can save tax that might otherwise be payable on your estate. If you leave 10% or more of your net estate to a charity such as The Exchange, this can also reduce the inheritance tax rate which applies to the rest of your estate.

Inheritance tax is a complex subject and so you should seek specialist advice about how inheritance tax applies to your own circumstances. You can also find out more by visiting the Government's website.

CAN I SPECIFY WHAT MY LEGACY IS USED FOR?

Yes, you can. Sometimes people like to leave a legacy for a particular project or activity at The Exchange, such as the delivery of community Textile workshops, Building Maintenance or Town Square exhibitions.  There are two ways that you can do this.

1. You can, in your Will, request or express a wish or preference that The Exchange use your legacy for a particular purpose. We would not be obliged to use your legacy for that purpose, but we will always try to follow your wishes, as far as we are able to do so.

2. If you are convinced that you only want to leave your legacy for a particular purpose - and you want to make sure that we must use it for that purpose and no other - then you can, in your Will, state that The Exchange must use your legacy for that purpose.

   However, please be aware that this type of legacy can cause difficulties if The Exchange cannot use your legacy for that purpose when the time comes and your gift may fail (i.e., The Exchange may not be able to receive the legacy you have left). Given this, if you are thinking about leaving this type of gift, it is very helpful if you speak to us first, before you make your Will, so that we can discuss with you whether The Exchange will be able to fulfil your intentions.

Do I need to tell you that I’ve left a gift in my Will to THE EXchange?

You don’t need to tell us, but if you feel comfortable sharing your intentions, we’d love the chance to thank you.

IS THERE A CORRECT WAY TO REFER TO THE EXCHANGE IN MY WILL?

If you wish to leave a legacy to The Exchange, it is important that The Exchange is properly identified in your Will.

So that you can make sure The Exchange is properly identified in your Will, we recommend you include its full name, address and registered society number as follows:

The Exchange Erith Limited, a charitable community benefit society (an exempt charity) with registered society number 8163 whose registered address is The Old Library, Walnut Tree Road, Erith DA8 1RS

We have also set out example legacy wording which we suggest that you take with you to your solicitor when you have your Will drawn up or change your existing Will. You can download that here: