LEGACY INFORMATION PACK

Transcription

1 cara a lifeline to academics at risk LEGACY INFORMATION PACK "When I arrived in England in 1966, after months of solitary confinement in apartheid jails, I was a psychological wreck. You gave me wonderfully sensitive support. When I arrived in 1988, having been blown up by a bomb placed by apartheid operatives, I was a physical wreck. Once again Cara was there to help me..." Justice Albie Sachs, Cara beneficiary 1966 and 1988 I should like to express my sincere thanks to this organisation. It has given me immense satisfaction to have made some contribution to the benefit of the country which gave me hospitality when I came here as a refugee from the Nazis. Ernst Chain, Nobel Prize winner and Cara grantee, 1945 Our only aims are the relief of suffering and the defence of learning and science Cara Founding Statement, May 1933

2 CONTENTS THE IMPORTANCE OF GIFTS IN WILLS p.3 USEFUL AND PRACTICAL ADVICE Dying without a Will p.5 Making a Will p.5 Different types of gifts in Wills p.5 Suggested wording p.6 Updating or changing an existing Will p.6 Using a Solicitor p.7 Legacy pledge form p.7 APPENDICES Appendix 1 Asset checklist p.9 Appendix 2 Example codicil form p.10 Appendix 3 Example clause for a codicil taking advantage of the Inheritance Tax 36% rate p.11 Appendix 4 Legacy pledge form p.12 Appendix 5 Glossary of terms p.13 2

3 THE IMPORTANCE OF GIFTS IN WILLS Gifts in Wills are extremely important to the work of Cara the Council for At-Risk Academics. Cara ( is a registered charity, registration number Cara s work began in 1933, when academics and scientists in the UK came together to rescue their colleagues in Germany from Nazi persecution. Some 2000 were saved. Over eighty years on, that work continues. Now, the men and women whom Cara helps come mainly from the Middle East, although altogether there are currently some 25 source countries. All of them started their academic careers hoping to help build better, more successful societies; but those dreams turned into nightmares. Some spoke up for academic freedom, and were targeted by repressive governments or extremist groups. Some saw their countries collapse into conflict, and faced the daily threat of violence from regime forces and militias, or forced conscription into the regime army. Some faced individual threats because of their religion, their ethnicity, or because they were gay. Almost all want to return home when they can, and will be needed to help re-build; but, for now, they urgently need to escape. Leaving a gift to Cara in your will (a bequest) can make a lasting change to their future and can help ensure that Cara can continue to provide the personal, sympathetic help it has to such people over many years. Any bequest is exempt from Inheritance Tax and Capital Gains Tax. It s easy to make a will and important too. If you do not have a will, making one is simple and inexpensive. If you would like your gift to benefit Cara, you need to make that clear in your will. Please do consult an independent solicitor when making your will and please read our recommended Legacy Clauses below. Al-Kindi University Hospital, Aleppo, Syria. Many of the academics whom Cara helps come from university hospitals, and are determined to return home when they can. 3

4 The support which Cara receives from UK universities means that it costs Cara very little on average just to rescue an academic at risk, with their family, and get them to a safe place. All organisations I have contacted have apologised in one way or another I have never felt so helpless and hopeless as when I imagine my educational future being destroyed before my very eyes Today, I knock on the door of Cara, my last hope. Syrian academic, Damascus University, July 2013 Pakistani army soldiers take part in search operation at the Bacha Khan University following an attack by militants on 20 January 2016, in which at least 21 people died. Cara s support restored my self-confidence which I was losing having stayed in the UK without a good job. Studying in the UK gave me the opportunity to access many resources and broaden my understanding. Alier, Head of Technical Affairs, South Sudan National Petroleum & Gas Commission Alier's is a Success Story, thanks to Cara Alier was first arrested in 1992, accused of supporting the Sudan People s Liberation Army, a multi-ethnic resistance group based in the south. He was released, but then faced with conscription into the Sudanese State army. He fled to the UK. He was supported by Cara to improve his skills by doing an MSc in Water Management. Following the 2005 Peace Agreement he returned home and worked for a UK charity as a Water and Sanitation Engineer. After South Sudan s independence, he took over a senior position in the Directorate of Water Resources Management, before beginning a new role as the Head of Technical Affairs, South Sudan National Petroleum and Gas Commission in January

5 Dying without a Will (intestate) USEFUL AND PRACTICAL ADVICE If you die without a Will, Partners of children do not automatically receive your estate. Other relatives may well have a claim on your estate, including your family home. If you leave no relatives, everything passes to the State. Writing a Will is relatively straightforward, but you should always seek professional advice. Further information about finding a solicitor can be found at websites listed on page 7. Making a Will You need to determine your total assets a useful checklist if provided at Appendix 1. You then need to decide who you would like to benefit from your Will. If you would like to include Cara in your Will, you can specify the purposes for which your gift should be used or leave it to the discretion of the charity s Trustees. You will need to include the following information: Registered charity name: The Council for At-Risk Academics Registered charity number: Registered address: The Council for At-Risk Academics, London South Bank University Technopark, 90 London Road, London, SE1 6LN A gift in your Will to a registered charity such as The Council for At-Risk Academics, will be free of tax and could help reduce your overall inheritance tax bill. See also page 6. Choose your Executors to make sure the wishes in your Will are carried out. These can be professionals, family or friends. You will need to sign your Will and have it witnessed by two people who are not beneficiaries. It is advisable to review your Will on a regular basis, particularly if your circumstances change, such as getting married or having children. The original, signed Will is the only legal binding version of your Will, so you need to keep it safe. It is inadvisable to keep it at home as it could be damaged (by fire or flood). Banks and solicitors will keep your original Will for you. Make sure your Executors know where to find it. Different types of gifts in Wills If you would like to leave a legacy to the Council for At-Risk Academics, we suggest using the following wording (as appropriate): a pecuniary legacy (A specific sum of money). a specific legacy (A specific item, such as jewellery or a car). a residuary legacy (The whole, or a share of, the remainder of your estate after all other gifts have been made, and taxes and debts paid. After having made provision 5

6 for your family and friends, you may choose to leave a share in the remainder of your estate to Cara. Suggested wording The sort of wording for leaving a gift in your Will to Cara might be: Pecuniary legacy I give the sum of to The Council for At-Risk Academics (charity registered in England and Wales, number ) of London South Bank University Technopark, 90 London Road, London, SE1 6LN. I further direct that the receipt of the Executive Director for the time being or his or her Deputy shall be a sufficient discharge for my Executors/Trustees. Specific legacy I give my [short description of property given] free of all inheritance tax to The Council for At-Risk Academics (charity registered in England and Wales, number ) of London South Bank University Technopark, 90 London Road, London, SE1 6LN. I further direct that the receipt of the Executive Director for the time being or his or her Deputy shall be a sufficient discharge for my Executors/Trustees. Residuary legacy I give the whole of my real and personal property not hereby or by any codicil hereto specifically disposed of after payment of my debts pecuniary legacies funeral and administration expenses and any taxes in respect of estate to The Council for At-Risk Academics (charity registered in England and Wales, number ) of London South Bank University Technopark, 90 London Road, London, SE1 6LN. I further direct that the receipt of the Executive Director or his or her Deputy shall be a sufficient discharge for my Executors/Trustees. However, this is only a guide and you should seek the advice of a professional to draw up your Will. Updating or changing an existing Will If you have already made a Will, and would now like to include a gift to Cara, you can make a codicil to your Will. A Codicil is a supplement to a Will and allows you to amend your existing Will without drawing up a new one, e.g. to change an amount of money or to add a beneficiary or a gift. You should not write on or amend your existing Will as it may invalidate it. You should consult a solicitor about any substantial amendments to an existing Will, particularly when amending a residuary legacy. An example of a codicil form is at Appendix 2. 6

7 Using a Solicitor A solicitor can give advice on all matters relating to making or changing your Will. Cara cannot recommend a solicitor but you may find the following websites useful: HMRC Inheritance Tax Probate Service The Law Society Legacy pledge form If you have remembered, or plan to remember, Cara in your will, thank you. Obviously this is and can remain an entirely private matter but if you provide us with notice of your intentions it may help us in long term planning. If you would like to notify is of your intentions please complete the legacy pledge form at Appendix 4 and return it to us. Any information you provide will be treated in confidence and it is not legally binding. Thank you for considering leaving a gift in your Will to Cara. 7

8 APPENDICES Appendix 1 Appendix 2 Asset checklist Example codicil form Appendix 3 Example clause for codicil to take advantage of the 36% rate of Inheritance Tax Appendix 4 Appendix 5 Legacy pledge form Glossary of terms The Council for At-Risk Academics (registered charity number ) of London South Bank University Technopark, 90 London Road, London, SE1 6LN e: thornton@cara.ngo w: 8

9 Appendix 1: Asset checklist The following lists might help you to consider your assets and how you would like your possessions to be distributed. Assets (what you have) House approximate value Car Money in banks/building societies Stocks and shares/unit trusts National savings/bonds Insurance policies Pensions Furniture Household effects, e.g. china, pictures Jewellery Clothing Other items Total Liabilities (what you owe) Mortgage Bank loans HP agreements Credit cads Tax owed Other debts Total 9

10 Appendix 2: Example codicil form for an existing Will N.B. This is only a guide and you should seek the advice of a professional to amend an existing Will I (full name). Of (address) Declare this to be a (first / second / third) codicil to my Will dated In addition to any legacies given in my said Will I give to The Council for At-Risk Academics (charity registered in England and Wales, number ) of London South Bank University Technopark, 90 London Road, London, SE1 6LN [ ] the sum of [ ]. % or all of the residue of my estate [ ] (a specific item). for its general purposes or for or to benefit...(please specify area) 2. I declare that the receipt(s) of the Executive Director or other duly authorised officer shall be a full and sufficient discharge to my executors. In all other respects I confirm my said Will and any other codicils thereto. Signed Date Signed by the above named in our presence and witnessed in the presence of him/her and each other. Witness One Signature... Witness Two Signature... Name... Name... Address... Address... Occupation.. Occupation. Date... Date. 10

11 Appendix 3: Example clause for a codicil taking advantage of the Inheritance Tax 36% rate N.B. This is only a guide and you should seek the advice of a professional to amend an existing Will 1. In addition to any legacies given in my said Will, I give to the The Council for At Risk Academics (registered charity number ) of London South Bank University Technopark, 90 London Road, London, SE1 6LN such a sum as shall constitute a donated amount equal to 10 or larger figure ( % ) of the baseline amount in relation to the general component [aggregate of the general, [survivorship], [settled property] component and [reservation of benefit property] of my estate. The legacy given by this clause shall in no event: (i) Be less than nn whether or not the lower rate of tax shall be applicable; and (ii) Exceed nn (the upper limit) even if in consequence of this restriction and the value of the legacy the lower rate shall not apply. [If this proviso shall apply and in consequence the lower rate of tax shall not be payable, the amount of this legacy shall [be equal to the amount of the upper limit] [be reduced to nn] [lapse]]. It should be noted that this relief was brought in by the Finance Act 2012 and applies to deaths occurring on or after 6 April

12 Appendix 4: Legacy pledge form Providing Cara with notice of your intentions helps us make long term plans. Any information you provide will be treated in confidence and is not legally binding. [ ] I intend to remember Cara in my Will [ ] I have remembered Cara in my Will I would like to let you know my intentions I plan to leave / have left: [ ] a specific sum of money [ ] all the residue of my estate [ ] a share of the residue of my estate [ ] a specific item Name.. Address..... Postcode Tel:... We are interested to learn why you are kindly intending to leave a gift to Cara in your Will. If you are happy to let us know, please write your reason(s) below. Once completed, please return this form to The Executive Director, The Council for At-Risk Academics, London South Bank University Technopark, 90 London Road, London, SE1 6LN 12

13 Glossary of terms These are some of the legal terms you may come across when you make your Will. Assets Beneficiary Bequest Codicil Discretionary trust Estate Executor Intestate Legacy Nil rate band Pecuniary bequest Probate Property Residue Residuary bequest Specific bequest Testator Any property a person owns. A person or organisation entitled to benefit from a Will. A gift in a Will. A document which changes or adds to an existing Will. A trust which enables a group of people (Trustees) to have discretion over when the trust is paid to any of the beneficiaries. All a person s possessions, including money and property, that they have when they die, after all the debts have been paid. A person or persons in a Will to be responsible for dealing with the disposal of an estate. These can be professionals, family or friends. A person who dies without having made a valid Will. A gift in a Will. The part of a person s estate that is taxed at 0%; the amount is set out in each Finance Act. A specific amount of money left in a Will. The legal procedure that establishes that a Will and/or codicil is valid Something of value, such as a house or car. This can also include things you can t touch, such as copyright. What is left of an estate after debts, taxes, gifts and legacies have been paid out. The proportion of a person s estate left as a gift in a Will, after all other gifts have been made and debts paid off. This can either be the total of the remaining estate or a percentage. A specific item or collection of items left as a gift in a Will, such as jewellery or a car. A person who has made a Will (male). 13

14 Testatrix Trust Trustee Will Witness A person who has made a Will (female). An arrangement where a person or persons hold property for the benefit of someone else in a defined way. A person who holds property for the benefit of someone else. A written declaration of how a person wishes their property to be disposed of after they have died. A person who countersigns a Will to confirm they have witnessed the signature of the Will by the Testator. 14