Why It Matters
Estate planning goes beyond dividing assets; it’s about defining the legacy you want to leave. For many Australians, that includes supporting causes and organisations they care deeply about.
Incorporating charitable giving into your estate plan offers more than emotional rewards. It can provide tax advantages, demonstrate your values to future generations, and even reduce the likelihood of family disputes by clearly outlining your intentions.
The Benefits of Giving
When structured thoughtfully, charitable giving in estate planning can:
- Create tax advantages: Certain donations may reduce the taxable value of your estate.
- Support meaningful causes: Your estate can continue funding charities, foundations, or community organisations that align with your values.
- Reduce family disputes: By making your wishes explicit, you remove uncertainty and potential areas of conflict among beneficiaries.
- Demonstrate generosity: Your choices send a powerful message about the importance of giving back.
A Case in Point
A Perth family business owner decided to leave 5% of their estate to a local hospital foundation. By clearly documenting this in their will and superannuation nominations, the family ensured two things: the charity received reliable, ongoing support, and the distribution among beneficiaries was transparent and dispute-free.
The decision not only reduced potential tension but also created a legacy that reflected the values of the family and the business.
How to Incorporate Charitable Giving
There are several ways to make philanthropy part of your estate plan:
- Gifts in your will: Nominate a fixed amount, percentage of your estate, or specific asset to be left to a charity.
- Charitable trusts or foundations: Create a lasting structure that supports causes long after your lifetime.
- Superannuation nominations: Allocate part of your superannuation benefits to a charitable organisation (subject to fund rules).
- Donor-advised funds: Work with a fund that directs your donation to multiple causes over time.
Each approach carries different legal and tax implications, so professional advice is essential.
Practical Steps
If you’re considering charitable giving as part of your estate plan, start with:
- Reviewing your current will and superannuation nominations
- Identifying causes or organisations you want to support
- Speaking with a legal or financial adviser about the tax and structural implications
- Communicating your intentions with family members to ensure clarity and reduce misunderstandings
Estate planning involves financial, tax, and compliance considerations that can quickly become complex. Supervision works alongside your legal and financial advisers to ensure your charitable intentions are structured effectively, your tax position is optimised, and your family remains informed and supported.
By partnering with trusted experts, you can turn charitable giving into a secure, lasting legacy.
