Getting charitable giving right: succession planning in an international world

One area that often benefits from specialist advice is charitable giving to non-UK organisations. At first glance, leaving a gift in an English Will to an overseas charity may appear straightforward. However, UK inheritance tax relief is only available in certain cases. Many non-UK charities do not automatically meet this test.

If a charity does not qualify, the gift may be subject to inheritance tax at up to 40%, significantly reducing the value of the legacy and potentially affecting the wider tax position of the estate. Executors may also be required to justify the charity’s status to HMRC, which can lead to delays, additional costs, and uncertainty during estate administration.

There may also be practical challenges. Overseas gifts can be affected by local regulations, banking restrictions, currency fluctuations, or political and economic instability. Once assets are transferred directly, there is limited ability to adapt if circumstances change.

In many cases, Donor Advised Funds (DAFs) can offer a more secure and flexible alternative to leaving assets directly to overseas charities.
A Donor Advised Fund is a charitable vehicle established with a UK-based charitable organisation. Gifts to the fund qualify as charitable donations for UK tax purposes, but the funds can later be distributed to charities in the UK or overseas.

For clients with international charitable interests, DAFs offer several key advantages, such as certainty of tax treatment, flexibility for the future and simplified estate administration.

DAFs can be particularly valuable for clients with complex estates, cross-border assets, or long-term philanthropic goals. When combined with careful drafting and clear guidance, they offer a practical way to balance tax efficiency with meaningful charitable impact.

Every client’s circumstances are different. Charitable giving in a cross-border context should always be considered as part of a wider estate planning strategy, taking into account family needs, asset location, and long-term intentions.

Our private client team regularly advises on international estate planning and charitable giving. We work closely with clients to structure wills that provide certainty, flexibility, and peace of mind—while ensuring that charitable ambitions are achieved in a tax-efficient way.

If you are considering leaving assets to overseas charities, or would like to explore whether a Donor Advised Fund could support your long-term philanthropic goals, tailored advice can make all the difference.