Bequeath to charity

Bequeath to charity

In the Netherlands, many people contribute to one or more charities every year. After all, it gives a nice feeling to do something for someone else or to contribute to a certain ideal.

If the charity has been designated as an ANBI (Public Benefit Institution) by the Tax and Customs Administration, it may also provide you with a tax benefit. See: Checking ANBI status (belastingdienst.nl)

Even after your death, it is possible to continue to support your charity(s), which often consist of purely voluntary contributions. However, it is important to record this in a will with your notary, a codicil is not sufficient. It is wise to appoint an executor in your will who will maintain contact with the charity after your death and settle your estate.

Also read: The executor (testamentary)

Gifting, but how?

The bequest

If you leave (part of) your money, house, shares or valuables to charity, this is called a bequest. A legatee/beneficiary is different from an heir. If the charity of your choice becomes a legatee, it will receive a specific amount of money or a certain property (bequest) from your estate. The beneficiary of a bequest has the choice of accepting or rejecting it. No strings attached.

Keep in mind that a bequest takes precedence over the inheritances of any other heirs. If you are a beneficiary of a bequest (amount of money), you will receive a fixed amount and not a percentage of what remains after deducting any debts.

The inheritance

If you appoint several heirs, including one or more charities, each will receive a percentage of the inheritance determined by you, but also of any debts. By accepting the inheritance or share beneficially, which means that an heir only accepts the inheritance or share if there are no debts, that problem is solved.

If you want to name a charity as your sole heir, this means that you may have to disinherit your partner and/or children first. Keep in mind that your partner and children retain certain rights, even if they have been disinherited.

Charities and inheritance tax

An heir or legatee (of money or goods) must pay inheritance tax. Charities with an ANBI status are completely exempt from inheritance tax on an inheritance, inheritance or bequest. The charity uses what you have left behind for the full 100 percent for its goal.