Legacy Giving

We have long benefitted from the generosity of Old Suttonians and other  community donors who have left bequests to the School as legacy gifts. To recognise their generosity, the School established the William Lambe Society back in 2007, which continues to grow year-on-year. With the School now focusing on fundraising for The 1576 Fund, our intention is to supplement the current donor programme by channelling existing and new legacy donations into the bursary fund. 

 

MAKING THE GIFT OF A LIFETIME

Following our original legacy campaign which we launched 12 years ago, the School has benefited significantly from the generosity of legacy based gifts from the Old Suttonian community.  These have included a legacy from an ESU student, which in 2011 enabled us to convert the old Tuck Shop into TC’s, our current  Sixth Form café.  In addition, the 2017–2018 academic year saw the first Sixth Form pupil benefit from the investment of a £1.4m legacy established by the Blyth family. 

Of course, most of us will not be able to contemplate leaving gifts anywhere near this magnitude, but that should not discourage you from considering this kind of gift to the School.  Whilst perhaps not able or willing to give during your lifetime, leaving a legacy may be an easier way to benefit the School and reduce the tax burden on your family. Inheritance tax-efficient, legacies can be left in a variety of ways to suit individual circumstances.

 
 

 

TYPES OF LEGACIES

There are three main types of legacy that you can leave to The 1576 Fund, depending on your personal preferences:

Residuary Legacies:  This type of legacy allows you to give all, or part, of what remains of your estate once your expenses and other bequests have been met. This ensures that your family are taken care of first and it is the safest way to ensure  your legacy retains its value.

Pecuniary Legacies: This type of legacy allows you to leave a specified sum of money. It can be linked to the Retail Price Index to ensure it retains its value over time.

Specific Legacies: This type of legacy, also referred to as a Bequest in Kind, enables you to gift a specified possession to the Trust. This could be in the form of valuables, property, works of art or stocks & shares. There are a number of other types of legacy in addition to these. Your solicitor will be able to advise you on each of them in more detail.

 

LEGACY TAX BENEFITS

The 1576 Fund, through the SVS General Charitable Trust is recognised as a charity by HM Revenue & Customs. It pays no tax on gifts of money during your lifetime or on your death. In addition, since legacies to The 1576 Fund do not attract Inheritance Tax, a legacy gift can reduce the Inheritance Tax liability on your estate, reducing the potential tax burden on your family. Essentially if you leave a gift to charity in your will, then it won’t count towards the total taxable value of your estate. This is called leaving a ‘charitable legacy’. In doing so, you can cut the Inheritance Tax rate on the rest of your estate from 40% to 36%, if you leave at least 10% of your ‘net estate’ to a charity.

To illustrate how this would work, let’s say that when you died your net estate was worth £425,000. In your will, you left it all to your partner who lives with you, using your full Inheritance Tax allowance (currently £325,000 for the 2016/17 tax year). Your ‘net estate’ is therefore £100,000, which is subject to  Inheritance Tax at a rate of 40% (i.e. £40,000).If you wanted to reduce the tax bill by making a charitable gift, you would leave your partner £415,000, and leave £10,000 to charity (10% of your ‘net value’ of £100,000).The estate would then pay 36% on £90,000 worth of assets instead. This means that your estate would pay £32,400 in Inheritance Tax.While this would mean your family receives less when you die, in this example making a charitable legacy would shave off £7,600 from the Inheritance Tax bill.

The rules on calculating what you can give away to charity to secure a lower tax rate aren’t always as straightforward as this illustration, so it’s a good idea to get the advice of a solicitor or accountant who specialises in estate planning.

 

HOW TO GET INVOLVED

If you would like any further information about our Legacy Giving programme or the William Lambe Society, please have a look through the brochure embedded above.

A will is a very personal matter and we of course understand if you would prefer to keep your intentions private. However, it can also be useful for the School to know of your plans, as this ensures that we are able to thank you personally and keep you informed about the impact your gift could make, as well as keep you up-to-date on developments at the School.

If you are considering leaving a gift in your will to the School, we would be pleased to discuss your intentions with you. We would like to assure you that this does not commit you in any way and that any discussions will be treated with confidentiality. For more information, please contact:

 
Development Office

Will Radford (Alumni Relations and Development Manager) - Contact Email

Contact Us

Sutton Valence School

North Street, Sutton Valence, Kent, ME17 3HL

 

Tel: 01622 845200

Email: enquiries@svs.org.uk

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