Legacies
Tom Clough (OH 1942-47), Master 1958-71 (Housemaster P 1963-71), Sometime Governor, Chairman of the OB committee, and Chairman of The Chapel Trustees
We bless thy name for one and all
Who founded for thy glory
Each ancient school, each minster tall,
To teach mankind thy story.
These words, written by A. L. Francis, will evoke fond memories, as we gather in the chapel to sing them on OB Day. Perhaps they will remind us of past friendships, forged at school, and countless people – both colleagues and staff – a kaleidoscope of memories, cherished over the years.
Whether our thoughts take us back to the Chapel, Big Field, the Music Schools or simply the time spent with friends in our houses, it is perhaps the moment to recall the past, re-live the friendships kindled, recall the talents nurtured and the many gifts which Blundell’s has bestowed upon us over the years.
Can we now respond, if we have not already done so, by leaving to the school a legacy when we die?
Remember Blundell’s in your will. When any one of us thinks of writing a will it is our family and loved ones who first come to mind as they should do. If and when the time is right for you to put a charity in your will, consider how far your life has been influenced for the better by Blundell’s and by the generosity of previous generations of benefactors. A legacy to the Blundell’s Foundation is one of the most meaningful and enduring gifts you can make and will provide a source of much needed capital on a continuing basis.
Blundell’s was built largely on an initial bequest from our founder Peter Blundell. Subsequent bequests and the philanthropy from its alumni, parents and friends, have enabled many of the additional buildings both old and new to be built. We hope that you will consider Blundell’s however little – to help future generations of pupils benefit from a bequest in your will in the same way you did from the generosity of others before you. All legacies, whatever their size, will directly benefit the School and its pupils particularly for Foundation awards such as the Peter Blundell Foundation provision; be assured that no element of bequests are spent on administration.
We spend large sums on bursaries each year, but the School does not have the significant endowments enjoyed by some other public schools and finding the money to secure assisted places is, for Blundell’s a constant battle. We would like to invite you to help us establish sufficient funding and become part of our vision for Blundell’s future. This would give us the financial security to guarantee assisted places for talented but less financial fortunate young people while giving you the satisfaction of knowing that your gift will benefit others long after your lifetime. Having said that, if you do wish to make a bequest to a capital project, then this would be most welcome too. Your gift of a legacy could help us make a real difference to young people, in most cases changing the course of their lives infinitely for the better.
A point also to consider is the potential tax benefit of a bequest to Blundell’s. Blundell’s is a charity, this means that any bequest, whether in the form of case, shares or property (including housing, paintings, or valuables) will normally be exempt from tax. This means the value of a bequest to us could be subtracted from your total asset valuation for inheritance tax by the Inland Revenue (currently 40% on all assets over £325,000)* thereby reducing your estate’s overall IHT liability.
The 1604 Society, named in recognition of our founding date, was created to allow the Head and Governors to thank all those who have made provision for, or are considering making, a bequest to Blundell’s in their will. Individuals who inform the Development Office of their intention to make a bequest to the School will automatically become members of the Society. Member’s names will not be published, as we realize this is often a very personal and sensitive issue. However, in order that they are recognized and thanked, an annual lunch takes place for those who wish to attend hosted by School Governors and the Head.
I appreciate that some delicacy is required in asking you to remember us in your will, so I must stress that we see legacies as providing for Blundell’s future in the very long term – and the longer the better. If you have questions about making a legacy gift, or would like some additional information, please do get in touch; feel free to contact me on 01884 232324 or in the Development Office. I welcome the opportunity to talk to you.
*correct at the time of printing, but we do advise seeking professional guidance.
Bequests
Leaving a legacy/making a bequest to Blundell’s
Blundell’s School is a registered charity, number 1081249. With contemporary property prices so high, estates that are subject to Inheritance Tax are ever more commonplace. Since April 2010 the threshold above which Inheritance Tax of 40% applies is £325,000.
The information provided below is intended to help you when you visit your solicitor in order to make or update your will. Your legacy or bequest to Blundell’s, because of its charitable status, will be free from Inheritance Tax. In addition, if your gift is made in the form of shares or property, it will be exempt from Capital Gains Tax.
There are various ways to leave a legacy or bequest to the Blundell’s Foundation involving:
Types of Legacies
Residuary bequest
The residue of your estate is the value remaining once all pecuniary legacies, debts, fees and other charges have been met. You might decide to leave the whole or part of the residue to Blundell’s School. The advantage of a residuary bequest is that its value will not be eroded by inflation.
Suggested wording
(Un-restricted)
Subject to the payments of my debts, funeral and testamentary expenses, I give, free of tax, the whole/(insert value) % of my estate not otherwise disposed of by this will to Blundell’s School, Blundell’s Road, Tiverton, Devon, EX16 4DN as an unrestricted legacy. It is my wish that it shall be applied for the benefit of Blundell’s wherever the need is greatest at the time of its receipt. On realisation of the bequest, a receipt from the bursar or other authorised officer shall be sufficient discharge for my Executors.
(Restricted)
Subject to the payments of my debts, funeral and testamentary expenses, I give, free of tax, the whole/(insert value) % of my estate not otherwise disposed of by this will to Blundell’s School, Blundell’s Road, Tiverton, Devon, EX16 4DN, to support (see notes below). If, upon my death, this area is fully funded, or if it is no longer an area in which Blundell’s is actively involved, I wish that my gift is used to support activities that are as close as possible to my original intentions. On realisation of the bequest, a receipt from the bursar or other authorised officer shall be sufficient discharge for my Executors.
Pecuniary or fixed-sum bequest
A gift of a fixed sum of money decided upon when the will is written. Naturally, we wish all Blundellians good health and longevity, and with many years elapsing between Blundell’s being included in your will and the benefit of your bequest being enjoyed! The value of the gift may reduce over the years because of inflation, you might want to consider index linking the sum so that the value of the bequest remains as you originally intended. You may like to consider setting aside a percentage of your estate rather than a fixed sum.
Suggested wording
(Un-restricted)
I give, free of tax, the sum of (insert amount) to Blundell’s School, Blundell’s Road, Tiverton, Devon, EX16 4DN as an unrestricted legacy. It is my wish that it shall be applied for the benefit of Blundell’s wherever the need is greatest at the time of its receipt. On realisation of the bequest, a receipt from the bursar or other authorised officer shall be sufficient discharge for my Executors.
(Restricted)
I give, free of tax, the sum of £(insert amount) to Blundell’s School, Blundell’s Road, Tiverton, Devon, EX16 4DN, to support (see notes below). If, upon my death, this area is fully funded, or if it is no longer an area in which Blundell’s is actively involved, I wish that my gift is used to support activities that are as close as possible to my original intentions. On realisation of the bequest, a receipt from the bursar or other authorised officer shall be sufficient discharge for my Executors.
Specific Legacy
A legacy need not be in the form of money. You may wish, instead, to leave specific assets, such as property stocks and shares, works of art or other valuables. These would need to be described specifically in your Will and could also reduce your Inheritance Tax liability. Please let the Development Office know the specific intentions attached to your gift as the School may sell such non-financial fits and utilise the proceeds as necessary.
Reversionary Legacy
A gift which enables you to provide for your family or friends and to benefit Blundell’s. It involves leaving assets to a chosen beneficiary to benefit them during their lifetime, with the whole or a portion reverting to Blundell’s upon their death.
Substitutional Legacy
This means that you can leave your Estate to a particular person or persons, but if they pre-decease you, then the bequest could go to the Foundation.
Notes
Unrestricted bequests are bequests that are directed towards the areas of greatest need with Blundell’s. These are particularly welcome as they allow Blundell’s to support the priorities at the time the gift will be realised. This widens the area within the School in which the gift can be directed, allowing for change over time. At the point the gift is realised, Blundell’s will work closely with the Executors to honour the donor’s wishes. However, we recognise donors may prefer to direct their bequests to a specific area. Please notify your solicitor which area you wish to support:
- To support bursarial provision for pupils to be educated at Blundell’s
- To support teaching in the area of...
- To support capital build projects
- To support (please specify)...
Deeds of Variation
If you become a beneficiary of someone else’s Will you may wish to consider transferring the whole, or part, of that inheritance to the Foundation using a Deed of Variation. The value thus transferred would be exempt of the Inheritance Tax which would otherwise have been payable out of the Estate in respect of the value transferred.
In Memoriam Gift
An immediate gift which can set up a Fund, in remembrance of a loved one. Many individuals have established in Memoriam funds for providing bursaries and prizes or have provided a bench or tree for the school campus. Please talk to the Development Office for further information regarding ‘In Memoriam’ giving.
Investment Bonds
There are a wide range of investment bonds available which allow growth in capital, the possibility of income from the bond and life cover. The gift of the life cover upon death can then be made to the School without any tax liability. Bonds can provide a very tax effective means of providing an income and making a tax effective charitable gift. It is strongly recommended that an Independent Financial Adviser is consulted before taking out a bond and that a lawyer advises on the appropriate wording of a legacy/bequest.
Life Assurance
A final suggestion is to take out a Life Assurance policy with Blundell’s Foundation as the named beneficiary. In this way, for a very modest premium, you can ensure substantial benefits for the School.
It is, of course, also possible to combine one or more of the above.
- To request a legacy brochure please email Ben Boswell at b.boswell@blundells.org, or
- Download a copy of the legacy pledge form
Inheritance Tax (IHT)
Gifts to Blundell’s may be tax free.
If you are thinking of remembering the School by making a gift in your Will, you may find the following guidance* helpful. When someone dies the law allows you to leave an estate worth up to £325,000 (2016/17) without having to pay any Inheritance Tax upon it. This £325,000 is called the 'Nil Rate Band'. After the first £325,000, the remainder of your estate will be charged 40% Inheritance Tax.
If you make a gift to Blundell’s in your Will, the amount of your legacy is deducted from the amount of the estate that is taxed at 40%, so effectively saving tax at 40% on the value of the gift. If you would like to make such a gift, you should ensure that your Will id drafted correctly to ensure that your estate gets the correct inheritance tax relief. We would recommend that you take specific advice from a suitably qualified professional such as an accountant or solicitor.
Additional tax relief for larger gifts under a Will (Gifts of 10% or more of your taxable estate) Making a substantial gift to Blundell’s in your Will could reduce the inheritance tax rate on all or part of your estate on death to 36%, compared with the standard rate of 40% mentioned above. If you are thinking of making a gift where the value is more than 10% of your net estate (after deduction of the £325,000 referred to above) then the 36% rate may apply.
The lower rate of inheritance tax will apply to your estate if gifts to charitable organizations including gifts to Blundell’s reach the 10% threshold mentioned above. So you could be eligible for this special treatment if you make gifts of less than 10% of your estate to each of several different charitable organizations. The rules are complex, and where someone’s estate contains business property, jointly owned property or trusts, there are further steps in the 10% threshold calculation. If by chance your IHT planning does not qualify your estate for the 10% rate reduction, your beneficiaries can arrange an instrument of variation to increase charitable donation to an appropriate level.
There are some circumstances where the calculation may be different, for example if you have made lifetime gifts to family members. If you already have provision in your Will to make substantial charitable gifts, you may wish to revisit the wording of your Will, as these rules have only applied since April 2012.
If you are thinking of making such gifts and have not already prepared a Will, or need to amend your Will, you should seek specific advice form a suitable qualified professional adviser. Whilst we cannot make recommendations, please let us know if you need assistance on how to find a suitable adviser.
In practical terms, IHT has to be paid by your executors before they are able to manage your assets and hand them on to the beneficiaries.
*please note that the above general guidance does not constitute tax or legal advice, and you should not take any action, or refrain from action, based on the above. Specific professional advice should be sought as appropriate.
What You Need To Do Now
- Arrange to see a solicitor to draw up a Codicil/new Will
- If you would like details of an OB solicitor near you, please contact the Development Director.
- Please consider a 1% Residuary Legacy if at all possible, or perhaps a greater figure if your circumstances allow.
- Please complete the Pledge Form and return it to the Development Director.
- If you have any questions or require more information, please do not hesitate to contact the Development Director.
Changing or updating an existing Will
If you would like simply to modify an existing Will, you can do so by adding a Codicil. This is an instruction added to an existing Will. It does, however, need to be executed according to the same formalities as a Will and legal advice should be sought. Nevertheless, it is a straightforward way of adding a new bequest to an existing Will. Download the Codicil Form.