Types of gift in a will
There are 3 main ways to leave a gift in your Will:
1. A share of your estate, for example 5%. This is called a Residuary gift.
2. A specific amount of money, for example £1,000. This is called a Cash gift.
3. A nominated object, for example, a house. Usually Macmillan will sell items like this in order to raise much needed funds. This is called a Specific gift.
The benefits of different types of gifts
Everyone's circumstances are different and it's important to understand what type of gift is best for you. We recommend you seek professional advice about which type of legacy to gift to Macmillan.
The comparison table below shows you some of the benefits of the different types of gifts.
| Residuary gift |
Pecuniary gift |
A specific gift |
|
|---|---|---|---|
| Inflation proof | |||
| Loved ones prioritised | |||
| Financial security | |||
| Certainty and simplicity | |||
| Easy for the charity to manage |
|||
| Macmillan as Executor of your estate |
Explanation of terms
-
Certainty and simplicity
A pecuniary gift is a set amount, so you will know the exact value of that gift to charity.
-
Financial security
A residuary gift adjusts with the estate value. This means, family members will always receive their intended share, regardless of any changes in the estate's size or your financial circumstances over time.
-
Easy for the charity to manage
Our team has a wide range of experience and knowledge about legacy giving. Macmillan processed over 5000 gifts in 2024, our job is to help make the process as easy as possible.
-
Inflation-proof
A residuary gift will retain its value over time. Resulting in maximum impact for your loved ones and for Macmillan. For example:
£5,000 fixed gift today loses value over time. A 10% residuary gift grows with the estate:
- Estate today: £100,000 → Charity gets £10,000.
- Estate in 20 years: £200,000 → Charity gets £20,000.
This ensures the gift keeps up with rising costs.
-
Macmillan as the Executor of your estate
Macmillan can act as your Executor and are committed to handling your wishes with care.The Macmillan Executor Service is open to everyone. We believe that the role of Executor is really important, and that you should always appoint someone you trust and who is motivated to do a good job. For those supporters who are trusting us with a share of their estate we feel we may sometimes be best placed to administer the estate.
Read all about our Executor Service. You can also contact the Legacy team about appointing Macmillan as your Executor by phone on 0300 1000 200, or email leavealegacy@macmillan.org.uk.
What does leaving a gift mean for inheritance tax?
If you leave a Residuary gift to Macmillan of at least 10% of your taxable assets, the rate of Inheritance Tax estate drops to 36%.
Increasing the amount you leave to charity so that it meets the 10% requirement sometimes means more funds for the charity and your family.
Take a look at the scenarios below to see how this could work in practice.
Scenario 1
- Ms Walker, a single woman, dies leaving assets worth £500,000
- Ms Walkers’ Will leaves 8.5% of the taxable assets (£15,000) to Macmillan and the rest to family
- The first £325,000 is tax free (“the Nil Rate Band”)
- That leaves a taxable sum of £175,000
- The exempt £15,000 legacy to the charity is deducted to leave £160,000
- That £160,000 is taxed at 40% = £64,000
- Therefore her assets are divided:
- HMRC: £64,000
- Macmillan: £15,000
- Family: £421,000
But what happens if Macmillan’s gift is increased to £17,500 (i.e. 10% of the taxable assets)?
Scenario 2
- She now increases her percentage to Macmillan, to 10% of the taxable sum (£17,500), so the inheritance tax drops from 40% to 36%
- The first £325,000 is tax free (“the Nil Rate Band”)
- That leaves a taxable sum of £175,000
- The exempt £17,500 legacy to the charity is deducted to leave £157,500
- That £157,500 is taxed at the reduced rate 36% = £56,700
- The assets are therefore divided as follows:
- HMRC: : £56,700 (down from £64,000 – reduction of £7,300)
- Macmillan: £17,500 (up from £15,000 – increase of £2,500)
- Family: £425,800 (up from £421,000 – increase of £4,800)
Thanks to the reduction in Inheritance Tax payable to HMRC, Macmillan and family both see an increase in their gift.
Other types of gifts in a will
Trusts
If you think you would like to create a trust in your will we recommend speaking to your solicitor. The most common trusts are where a supporter gives a friend or relative the opportunity to live in their house for the rest of their life - with Macmillan receiving the house once the friend or relative has died. There are, however, many other uses for trusts.
Endowment
We have recently created the Macmillan Endowment Fund for supporters to donate to. Any money given to the endowment fund will be invested, with any income earned being spent on supporting people affected by cancer. Find out more information about the Macmillan Endowment fund.
Pension funds and life insurance policies
You can nominate a charity to receive some or all of the money from your pension fund or life insurance policy after your death.