Legacies

Tome Clough
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. 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. If and when the time is right for you to put a charity in your will, please remember your time with us. 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. Gifts may be directed towards specific areas of school life, or alternatively to provide endowment for the Peter Blundell Foundation Awards, whatever is most important to you.

Bruce HalfordPupils of today are the beneficiaries of previous generosity such as the Bruce Halford bequest for the provision of prizes for outstanding pupils with an interest in studying history. It is our responsibility to ensure that the pupils of tomorrow are equally provided for to ensure that Blundell’s retains its place as a leading independent School. Many previous legators have left an indelible impression on so many people - help us ensure that future generations can also enjoy such benefits.

To honour those who have helped in the past and in recognition of those in the present who have pledged money to Blundell’s, the 1604 Society has been formed to commemorate the founding of Blundell’s. Individuals who inform the Foundation of their intention to make a bequest to the School will automatically become members of the Society. Members names will not be published, as we realise this is often a very personal and sensitive issue. However, in order that they are recognised and thanked, an annual lunch takes place for those who wish to attend hosted by School Governors and the Head Master.

As a registered charity, all gifts are completely free of Inheritance Tax and can include money, land, buildings or chattels. 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.

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 with 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 with 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 describes 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 enable 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.

Inheritance Tax (IHT)

IHT is essentially a form of death duty – the tax charged on what you leave behind when you die. In some ways it's a fee charged by the government for allowing you to leave at least some of your wealth to your heirs.

The law allows you to leave an estate worth up to £325,000 (2009/2010) 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.

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.

Thus, it is worth bearing in mind that you can choose either to pay more tax to the Inland Revenue or less by making a gift to a charity whose work you support. There are tax implications in leaving the residue of your estate between charitable and non-charitable beneficiaries; your professional adviser will be able to assist you with this.

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.