A legacy to Manchester Metropolitan University could bring benefits to future generations of students and to the wider communities of Manchester and the North West – in which many MMU alumni make major contributions.
Legacy gifts are tremendously important and when writing your will you do not have to choose between your family, charity or your university. It is possible to remember them all, giving security to your family and extending your charitable giving beyond your lifetime.
As an educational institution, the University is an exempt charitable body and so does not have a registered charity number.
Due to its status, MMU pays no tax on gifts of money or property made to the University during your lifetime or on your death.
All estates above a certain threshold are subject to inheritance tax on their net value (the amount remaining after debts and other charges have been met) and legacies to tax-exempt beneficiaries such as the University have been deducted. It is possible therefore to reduce the tax liability on the overall estate by making a legacy to MMU.
Simple alterations can be made to your will through a supplement known as a Codicil. A Codicil confirms your original will but also adds to it and may be particularly appropriate if you wish simply to add a bequest to a charity. However, it is important that you consult with your solicitor who can advise you whether a Codicil would be appropriate.
There are five common ways to give a legacy.
This is a simple legacy of a specified sum of money to a named beneficiary. The disadvantage of this type of gift is that inflation will erode its value over the years, unless the gift is expressed to be index linked.
Suggested wording for pecuniary bequests: ‘I give absolutely and free of all taxes to Manchester Metropolitan University, All Saints Building, All Saints,
Manchester, M15 6BH the sum of £… [in figures and words] for the general purpose [or the purpose of …] and I further direct that the receipt by the Registrar or other proper officer of the University shall be a full and sufficient discharge to my executors or trustees.’
The residue of your estate is the value remaining after all pecuniary legacies, debts, and other charges have been met. You might decide to leave the whole or a proportion of the residue to the University. The advantage of a residuary legacy is that its value will not be eroded by inflation.
Suggested wording for residuary bequests: ‘I give absolutely and free of all taxes to Manchester Metropolitan University, All Saints Building, All Saints, Manchester, M15 6BH [all or the % size you wish to give] of the residue of my estate for general purposes [or for the purpose of … ] and I further direct that the receipt by the Registrar or other proper officer of the University shall be a full and sufficient discharge to my executors or trustees.’
A reversionary legacy is a valuable way of both providing for family or friends and benefiting the University. It involves leaving assets to a chosen beneficiary to use during their lifetime, with the whole or a portion reverting to Manchester Metropolitan University on their death.
A legacy need not be in the form of money. Specific gifts in the form of stocks and shares, works of art and other valuables can also be bequeathed to the University.
A conditional legacy addresses the possibility that you may survive all your named dependents. It would ensure that, in this event, your estate would be left to the University and to any other beneficiaries you may name.
A legacy to MMU can be either a:
If you wish to make a legacy for a specific purpose we will make every effort to respect your wishes. Situations do change over the years, however, and if the original purpose of the legacy became irrelevant, a provision allowing the University to redirect your gift would be most useful.
You could instruct the University to implement the legacy in a field similar to the one that was originally intended, or to direct it to wherever there may be a pressing need for financial support.
To find out more or to speak to someone personally about leaving a legacy,
Alumni and Development,
Manchester Metropolitan University
Bellhouse Building, Lower Ormond Street
Manchester, M15 6BX
Phone +44 (0)161 247 3402
A Victorian Christmas Card from one of the Archives and Collections donated to MMU Library’s Special Collections.