14 An important word about tax Choosing the right type of legacy Abingdon School is a registered charity (1071298), so all legacies made to the school are exempt from UK Inheritance and Capital Gains Taxes. Under current rules, if you leave 10% or more of your chargeable net estate to charity, the Inheritance Tax rate on the whole of your taxable estate is reduced from 40% to 36%. Residuary Bequests This allows you to leave the remainder of your estate, or a percentage of it, to a beneficiary such as Abingdon, after all other specific bequests and expenses have been settled. Residuary bequests are often the most significant type of legacy, and will ensure that, as your estate grows over time, so too does your gift to Abingdon. Pecuniary Bequests This involves leaving a specific sum of money in your will. To ensure that this sum retains its value over time, you might consider linking it to inflation. Reversionary Bequests In this arrangement, your assets are entrusted to trustees. Your family members or other beneficiaries receive income from these assets during their lifetime, with all or part of the capital eventually passing to Abingdon after their deaths. Conditional Bequests These bequests specify that should none of your named dependents survive you, your estate will go to other beneficiaries, which can include charities like Abingdon.
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