Taxes on death – gifts to charity can help

21st October 2022

“In this world, nothing is certain except death and taxes” Benjamin Franklin

It is often the case that whilst we accept death is a certainty for us all, the payment of tax upon death can cause considerable anxiety and is a major fear factor. However, understanding Inheritance Tax (IHT) and being aware that there are options to mitigate tax can allay the fear of the unknown.  Leaving a gift to charity is one way to achieve this.

Lorna Bastian is a Private Client Partner at Aquabridge Law, based in Chelmsford.  As a specialist in the field of Wills, Trusts and Probate Lorna advises clients in relation to their estate planning.   We asked her to explain IHT “simply” and how leaving a gift to charity can be a helpful option.

“Partnering with clients to understand their personal circumstances and what is important to them usually leads to consideration of their inheritance tax (IHT) position,” says Laura.

“These discussions will often include gifts to charity, either during lifetime or as part of estate planning.  Essex Community Foundation provides a potential solution for many of my clients which I am pleased to talk about.  They may be interested in setting up a charitable fund in their name after they die or if they start giving during their lifetime, it can be a rewarding and enjoyable experience, while also mitigating tax.

“Let’s consider a couple – Max and Lisa – they are married and have had successful careers leading to retirement at 55. They have a property worth £700,000 which is mortgage free, and each have savings of £200,000. Their total estate is therefore worth £1,100,000.

Assuming they have made no gifts in the seven years before their death they would each have a nil rate band for Inheritance tax of £325,000. If Max dies first and leaves everything to Lisa in his will, then when Lisa dies, she would be able to claim the transferrable nil rate band because the estate was spouse exempt passing to her. Lisa’s estate would have two nil rate bands totalling £650,000 (her own and Max’s nil rate band) and they both want to leave their estate to nieces and nephews on second death.

How much would they have to pay in Inheritance tax?

£1,100,000 less £650,000 (at 0%) = £450,000 chargeable estate

£450,000 is subject to IHT at 40% therefore the IHT liability would be £180,000

So, with the above scenario, they arrive at the office of their professional advisor and ask what could they do to reduce the amount of Inheritance tax?

1. They could plan to utilise their gifting allowances during lifetime. More information on this can be found at www.gov.uk/inheritance-tax/gifts.
2. If they used their tax-free allowances, they could also elect to make lifetime gifts in excess of these allowances, known as Potentially Exempt Transfers (PETS). If you survive for seven years having made a bone fide PET this would reduce the value of the estate for IHT purposes.
3. They could consider the structure of their wills and include legacies to charities which would be exempt from Inheritance tax. These can be registered charities or if they wished to establish their own foundation in their lifetime, they could do so with the help of Essex Community Foundation. Charities are exempt from IHT therefore any legacy to a registered charity would not be chargeable to IHT.
4. If Max and Lisa wanted to structure their wills to include a charitable gift so that at least 10% of their net estate was passing to charities this would result in a reduction in the Inheritance Tax Rate. Rather than payment of tax at 40% this is reduced to 36% so the tax liability would be much less.

What you might not be aware of:

If Lisa and Max had not considered the position before they died, and the beneficiaries of their estate wanted to support charities, they would also have the option to enter into a Deed of Variation to include charitable legacies from their inheritance, and this again would have the result of reducing Inheritance tax if the Deed of Variation was signed within two years of the date of death.

If you are interested in making a gift to charity as part of your estate planning, please contact us on 01245 355947 or email perry@essexcf.org.uk to discuss your ideas and wishes.  It is always advisable to talk to a financial adviser to ensure you are fully aware of the tax implications.

Retired greyhounds lend a helping paw

20th October 2022

Dogs are proving to be ‘man’s best friend’ in Uttlesford, as retired racing greyhounds are giving people who are lonely and isolated, a much-needed morale boost through human-animal bonding.

Leading these canine companions is Ace Hounds CIC, who applied to Essex Community Foundation (ECF), the independent charitable trust, for funding towards their core costs to allow them to reach more people in the area.

Thanks to a £5,000 grant awarded from the Diana Tinson Fund, which is managed by ECF, Ace Hounds has been able to re-start their popular visiting programme where they take the dogs to people in their homes or care homes.

The programme was heavily impact by the COVID-19 pandemic and had to pause.

Susan Phillips, who volunteers for Ace Hounds, said: “The use of animals, especially dogs, has been proven to be therapeutic for people who are lonely or anxious, and feedback from our services has shown that our clients are leaving sessions feeling happier and motivated from the increased physical activity and time spent with the greyhounds”.

“Using animal assisted activities, we help people with dementia, learning difficulties, mental health difficulties, and people facing personal barriers to gain self-confidence”.

She added, “We have seen an increased need locally as there are many people, of all ages, continuing to feel the effects of the long-term loneliness and anxiety they experienced during COVID-19 lockdowns.”

Ace Hounds’ Project Leader, Elaine Sheppard, said: “I have been rehoming greyhounds for years and cherish the friendship and joy they bring to my life. It is wonderful to see them helping other people at these sessions. We have also recently started working in schools to help young people”.

Andy Payne Worpole, Head of Programmes at ECF, said: “Uttlesford is a rural district, and this can mean that local people face higher levels of isolation and loneliness than those living in built up areas, so we are pleased to support this innovative solution”.

“We encourage other charities and voluntary groups working locally to please contact us if they are in need of funding.”

To apply for a grant to support your charitable work, complete this short online application form.

If you have any questions or would like to discuss your organisations eligibility, please call our grants team on 01245 356018 or e-mail grants@essexcf.org.uk.

Water company puts Essex community funding up for grabs and makes a final call for applications

12th October 2022

Up to £2,000 of funding could be up for grabs for charities across Essex, thanks to a community initiative by Essex & Suffolk Water.

The water company’s Community Foundation Fund is making a last call for new project applications, as the deadline of the current round of funding on Monday 17 October 2022 rapidly approaches.

Since forming the long-standing partnership with Essex Community Foundation to deliver project grants in 2003, over 150 community projects have been supported by the fund and more than £134,000 donated to good causes.

Essex & Suffolk Water’s Partnerships Manager, Ross Smith, said: “A big part of our purpose is meeting the needs of our local communities and we’re really proud to work with Essex Community Foundation to help good causes.

“We support our communities in many ways – from gifting time and expertise through our employee volunteering programme, to donating cash and equipment to support a range of projects.

“We want to help as many deserving causes as possible through our partnership with Essex Community Foundation, so if you’re a local, registered charitable cause looking for support then we’d welcome an application from you.”

So far this year, grants have been awarded through the fund to Havering Volunteer Centre to support a volunteer recruitment campaign in Havering. Abigail’s Footsteps was also awarded crucial funds to provide specialist baby loss counselling sessions to bereaved parents referred from Southend University Hospital.

Andy Payne Worpole, Head of Programmes at Essex Community Foundation said, “Support for local communities has always been part of Essex & Suffolk Water’s ethos and we are pleased to partner with them to ensure that the funding they give makes a difference.

“Since they set up their community fund with us nearly 20 years ago, 152 grants totalling £135,000 have been awarded to voluntary and community organisations working in Essex & Suffolk Water’s supply areas. Grants have supported a wide range of projects contributing to the environment, health and wellbeing of local people, and community support initiatives.

“As the fund is invested, we award grants every year and we look forward to building on all that has been achieved so far, and supporting more local charities and voluntary groups that are in need of help.”
All applications for grants between £1,000 to £2,000 will be considered, however, the utility company will prioritise projects that set out to improve the health, education and environment of the community.

Fill out the short online application form here. The deadline for the current round of funding is Monday 17 October 2022.

Projects can also be supported by the company’s ‘Just an Hour’ employee volunteering programme to give causes a helping hand.

All applications will be carefully considered and successful bids chosen by the company’s volunteer panel.

Pictured: Little Heroes ASD Support Group received funding previously to enhance their safe play area at a support group for families with autistic children.

Local companies raise money to keep hearts beating in Essex

21st September 2022

Local companies, brought together by Chelmsford-based business, Real8 Group who are a chartered town planning, quantity surveying and project management company, will help keep hearts beating in Essex after raising over £10,000 for a local charity.

The event, which was held at Chelmsford Golf Club, raised money for the Essex Heart Fund (EHF), which is managed by the local independent charitable trust, Essex Community Foundation.

Paul Calder, Director at Real8 said, “We were overwhelmed by the support we received.  All 18 holes of the course were sponsored, and 13 local companies entered teams.  Everyone who contributed and took part was so generous which made for a great day, and the sun shone too which was a bonus.”

The winners of the day were Elwell Taylor in first place with 89 points, followed by Phoenix Compaction Systems and Horizon Construction.

Adam French from Horizon Construction won nearest the pin on the 9^th hole and Paul Beresford just missed out on a ‘hole in one’ to be nearest the pin on the 18^th.

Companies that supported the event included Academia, Applied Acoustic Design, A W Hardy, Beresfords, Colchester Environmental Ltd (CSH), Cunningtons LLP, Elwell Taylor, Green Recycling, Horizon Construction Group, Mersea Homes, Phoenix Compaction Systems, Precise Security, The Grange Group, RX Architects, Scene Architects and WellMax Scaffolding.

A key fundraising activity of the day was the ‘wheelie-bin challenge’ arranged by Green Recycling. Golfers were invited to test their skills and chip a golf ball into a recycling bin from a distance. Those that were successful secured a donation of £50 the EHF and £50 for themselves.  The generosity of those involved on the day was evident as those who won, also donated their winnings to the charity.

Dr Gerald Clesham, a heart consultant at the Cardiothoracic Centre in Basildon and one of the founders of the Essex Heart Fund said, “Our huge thanks to Paul Calder and the Real8 team who did a lot of hard work to organise an excellent day. We are grateful to all the companies who sponsored holes and took part, raising an amazing amount of money.

“Events like this help us raise awareness of the Essex Heart Fund and the work that we do to improve the care of cardiac patients in Essex. We want to help develop the best treatments for our patients, support them after they have left hospital and fund research-based projects to invest in the future”.

To find out more about Essex Heart Fund, visit www.essexheartfund.org.uk. For information on how to donate, call 01245 355947.

Southend-on-Sea charities receive wave of support

20th September 2022

Southend Mencap, Southend In Sight, Send the Right Message and Shoeburyness Residents Association are among 12 voluntary and community organisations to receive a much-needed funding boost from the Southend Community Fund.

Grants totalling £40,000 were awarded from the Fund, which was set up in 2001 with the independent charitable trust, Essex Community Foundation (ECF). A panel, made up of local people, works with ECF to consider applications and agree the grants to be awarded each year.

Southend Mencap will use their grant of £3,500 to run a drama-based project called ‘Showstoppers’ that helps students to build confidence and addresses a wide range of issues that adults with learning disabilities may experience.

Southend In Sight received a grant of £4,048, to support the well-being of people with sight loss or visual impairment who have been greatly affected by the COVID-19 pandemic.

Catherine Hodgson, the organisation’s community fundraiser said: “We are so grateful to receive this funding boost.  Over the past two years we have seen a steep rise in our utility bills, insurance premiums and other costs. On top of that we have a leaking roof that needs repairing and our boiler has been condemned.

“Knowing we have this grant towards our running costs means we can focus on getting the repairs done and supporting our clients.”

Send the Right Message received £3,500 to enhance the well-being of children, young people, and adults with special educational needs and learning difficulties.  They hope to expand their services in the coming year.

This year, the panel were pleased to award £2,800 to Shoeburyness Residents Association for an innovative solar powered “talking bench” on Shoebury East beach. 

Other local charities benefiting from grants awarded from the Fund this year were:

• Southend Rugby Football Club (1870) Limited received £1,000 towards a rugby project for young people with special educational needs and disabilities.
• Get The Kids Out received £2,000 towards weekly sports sessions for children.
• South Essex Advocacy Services received £2,000 towards the costs of advocacy training and qualifications for three volunteers.
• Welcome to the UK received £2,000 towards the costs of developing a new community space and increasing the number of English as a Second Language lessons on offer to migrants.
• Wellbeing at Garon Park CIO received £2,000 for a community event celebrating the Queen’s Jubilee and showcasing the facilities at Garon Park.
• Shoeburyness & Thorpe Bay Baptist Church received £2,600 towards activity sessions including general fitness classes and afternoon tea for those with dementia.
• The One Love Project received £4,711 for the salary of a new part-time admin and bookkeeping post at an organisation supporting homeless people.
• Vincent De Paul Society received £7,590 to set up a database and pay for three year’s subscription costs.

Andy Payne Worpole, Head of Programmes at ECF, said: “These latest grants reflect the diversity of Southend and the needs of local people.  They are helping to improve wellbeing and are supporting one-off projects, but there is also a recognition of the importance of contributing to an organisation’s core running costs.

“As well as awarding grants annually, the Fund offers an opportunity to people who want to give back to their local community.  Donations can be made as a one-off or regular gift, but gifts of shares can be accepted, or you can speak to your professional adviser about leaving a legacy in your will.

“Dormant or inactive trusts can also be transferred into the Fund.  While the trust is reinvigorated for the benefit of future generations, the trustees can remain involved as advisers, but without the legal and financial responsibility and the original intentions of the trust can continue.”

If you would like to talk about giving to the Southend Community Fund, please contact Perry Norton, Head of Development, at ECF on 01245 355947 or perry@essexcf.org.uk.

Community Cares Fund hands out £35,000 to good causes in Essex

Funding totalling £35,000 has been awarded by the East of England Co-op though its Community Cares Fund to 9 organisations supporting the community in Essex. Grants ranged between £1,000 and £5,000 and are expected to directly benefit more than 3,000 local people.

The region’s largest independent retailer, the East of England Co-op, set-up the fund in April 2020 and with this latest round has supported local communities across the region with donations of more than £591,000 to date. There are two funding rounds annually and the East of England Co-op is set to open applications for the next round of funding on 19 September.

The ‘Community Cares Fund’ receives applications for funding across three pillars – community action, food justice, and mental health and well-being. Grants awarded under mental health and well-being across the region account for 76% of the total fund awarded this round, a sharp rise from the average of 54%.

Niall O’Keeffe, joint chief executive of the East of England Co-op commented: “With this round of funding we have been able to respond to the profound need of those affected by the cost-of-living crisis. As we head into the more difficult winter months ahead, the mental health fallout from the financial difficulties many are expected to experience will be sharp. Many of the grants awarded will go directly to supporting vulnerable local people during this difficult time.”

Among the beneficiaries this round is the Little Explores Preschool in Greenstead, who have received a grant for a new project to introduce young children to new food and teach them about healthy eating and food production, as well the importance of good oral health.

Rachel Eaton, manager at Little Explorers Preschool, said: “We are so excited to receive this funding from the East of England Co-op. It is giving us the opportunity to talk about healthy eating and good oral care in really fun, new ways.

“We will be improving our garden area so the children will have the opportunity to grow food and maybe take some home too! Since the pandemic, many parents have also found it difficult to find dentists. So, alongside growing and eating fruit and veg, we will be providing toothbrushes and teaching the children about good oral health too. The impact will be long-lasting. We are hoping that by learning about healthy choices now, the children will continue to do so throughout their adult lives too. Both the team and our children cannot wait to get started with this project; it will make such a difference.”

Funding for the Community Cares Fund is supplemented by East of England Co-op members who contribute to the fund. Niall added: “To everyone who has donated to the Community Cares Fund, thank you. It continues to make a very real difference to people in your community. We urge other members and customers to donate in store – one easy option is to donate your dividend payment.”

The East of England Co-op works with the Essex Community Foundation (ECF) to distribute and deliver the Community Cares Fund.

The deadline to apply for their next funding round passed on 10 October at 5pm.

If you have any questions or would like to discuss your charitable work, please call the ECF grants team on 01245 356018  or email grants@essexcf.org.uk.