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ARTICLE · 14 SEPTEMBER 2026

Has Your Charitable Legacy Been Future-proofed? Donor-Advised Funds And Giving Through Your Will

Wedlake Bell LLP
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Recent changes to inheritance tax rules have narrowed the charity exemption, potentially affecting charitable gifts in Wills made for "general charitable purposes." Donor-advised funds offer a flexible, tax-efficient alternative that allows individuals to maintain philanthropic intent while adapting to evolving circumstances and involving future generations in charitable giving.

United KingdomTax
Victoria Mahon De Palacios
Victoria Mahon De Palacios
Abigail Pearson
Abigail Pearson

Is your charitable legacy still fit for purpose?

Many people include charitable gifts in their Wills to support causes that matter to them. However, recent changes to the inheritance tax (IHT) charity exemption mean that some gifts in Wills may no longer achieve the intended tax treatment.

The Finance Act 2026 narrowed the scope of the IHT charity exemption with effect from 6 April 2026. Whilst outright gifts to qualifying UK charities continue to benefit from 100% IHT relief, gifts made to executors/trustees to be applied for “general charitable purposes” no longer qualify.

In the light of this, individuals may wish to consider a flexible vehicle, such as a donor advised fund (DAF), to help future-proof their charitable giving.

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