Inheritance tax is tax paid on your Estate at the time of your death. Inheritance tax is currently 40% of an Estate, after a tax free allowance of £325,000 is deducted.
Any gift made to a charity is not liable for inheritance tax, therefore leaving Isabel Hospice, or any charity, a gift in your Will reduces the amount of money in your Estate that is used to calculate what you pay in inheritance tax.
Legislation on inheritance tax is subject to change. If you think your Estate is going to attract Inheritance Tax, please discuss this with your solicitor.