Any gift, large or small, helps our volunteer lifeboat crews save lives. However, a gift to the RNLI could also help reduce the inheritance tax on your estate (what you own when you die). Your estate includes your house, stocks and shares, pensions, insurance policies, annual service benefits, PEPs/ISAs, and savings accounts.

The Chancellor has recently announced changes to inheritance tax law. Your solicitor will be able to provide you with advice specific to your circumstances. Currently the threshold for Inheritance Tax is £325,000 for individuals. Married couples and members of civil partnerships are able to transfer any unused allowance to a spouse or partner so that they can leave up to £650,000 before death duties are due.

Generally speaking gifts to spouses, civil partners and charities in the seven years before death and in a Will are deducted from your estate before inheritance tax is calculated. So if these gifts reduce the value of your estate to below the threshold, it should no longer be liable for any inheritance tax. This means many people can make a significant contribution to the RNLI with less of an effect on the value of what they leave to other beneficiaries.

Of course, everyone's financial situation is different, so this only provides a general outline of how inheritance tax might affect you. There are other issues that could affect the level of your inheritance tax, so you should always ask your solicitor about your particular circumstances. Further information is also available from HM Revenue & Customs. If you have any other questions, please contact Mark Allwood, Legacy Enquiries Officer, on 01202 663032 or email mark_allwood@rnli.org.uk.

Information about inheritance tax in Ireland.