At Brunsdon Financial, we’ve seen a marked rise in clients taking proactive steps to protect their estates. As families face increasing tax exposure, there is a growing desire not only to pass on wealth efficiently but to leave behind a meaningful legacy.
One option gaining popularity is charitable giving. It’s not just an act of generosity- it can also be a smart financial decision. Under current HMRC rules, if you leave 10% or more of your net estate to charity on death, the IHT rate on the rest of your estate drops from 40% to 36%. That 4% difference can translate into a substantial tax saving while supporting causes you care about.[1]
“We’re working with more clients who want their estate planning to reflect their personal values,” says Duncan Edwards, Estate Planning Adviser at Brunsdon Financial. “Charitable donations can be a powerful way to reduce Inheritance Tax and leave a lasting legacy, especially when aligned with thoughtful planning.” This increase in interest comes at a time when the tax landscape is shifting. According to HMRC data released in April 2025, Inheritance Tax receipts for the 2024–25 tax year reached a record £8.2 billion, £800m higher than the same period last year.[2] This rise highlights the importance of early estate planning to manage potential liabilities.
With pension assets also set to fall within the IHT scope for some families from April 2027 – following changes confirmed in the Spring Budget 2025[3] – many are now reviewing their wills, trusts, and gifting strategies.
Now is the time to take stock. A well-structured estate plan ensures your wealth is distributed according to your wishes, minimises unnecessary tax, and gives you the opportunity to make a lasting impact – whether through family, charity, or both.
