Sometimes we simply aren’t able to provide for the causes we care about, but bequests offer a last chance to use money for the greater good.
Throughout our lives, we’re often touched by the struggles we face – whether our own or a loved ones. It’s for this reason that many of us want to be able to support charities during or after life. Non-profits have noticed that many younger-than-expected Australians are choosing to assign gifts in their wills well before they are likely to pass.
While usually those reaching retirement age were approached regarding bequeathment, Include a Charity campaign manager Helen Merrick says many younger people have shown strong feelings about charity and want to leave a legacy.
If you’re starting to think about your estate plan and will, you too may wish to leave a gift for a cause dear to your heart – so what needs to be considered?
Make the most of your hard work and plan to pass on your legacy to the ones who need it most. Get in touch today.
Why not lend a helping hand to those in need?
Providing for your family posthumously
Your loved ones should be the first you consider in creating your will. Ultimately, the purpose of the document is to legally direct the dissemination of your assets after you pass, so that your dependants and other loved ones are cared for.
Talk with a professional to discuss how to reasonable divide your wealth among beneficiaries.
Letting your money work for the greater good
Bequeathing to a charity is a wonderful opportunity to provide for a cause you care about.
Many of us may feel as though we aren’t able to donate much in our lifetimes – so bequeathing to a charity is a wonderful opportunity to provide for a cause you care about. However, MS Research Australia claims that only 7.5 percent of Australians leave bequests in their will. Raising this proportion by only 12 percent should supposedly mean that charities receive $440 million each year.
When leaving to charity there are four kinds of gift you can give:
- Residual – the remainder of your estate after your assets have been divided to loved ones.
- Pecuniary – specific assignment of assets to a charity, be it a cash value, property, or shares.
- Fractional – a gift expressed as a percentage of your estate, which takes into account the potential for estate values to change due to inflation or market fluctuations.
- Whole estate – giving your entire estate to charity is often only done by those without any family or preferred beneficiaries remaining.
At any stage of life, you might consider letting your money make a difference.
Remaining open to avoid disputes
Take the time to explain your motivations and ask that your wishes are respected.
All wills can be disputed. Anyone who feels they were inadequately provided for in your will may take disputes to court in order to win a more significant portion of your estate.
No one wants to leave arguments about money in their wake. So, to avoid creating tension as a result of your will, it’s important that you communicate to your loved ones that you intend to leave a gift to charity. Take the time to explain your motivations and ask that your wishes are respected. It also pays to explain this to your executor and to the charity you intend to support.
If you’re considering helping a not-for-profit after your passing, but want further guidance, we are ready and eager to help. Contact us today to discuss your estate plan.
What you need to know
This information is provided by Invest Blue Pty Ltd (ABN 91 100 874 744). The information contained in this article is of general nature only and does not take into account the objectives, financial situation or needs of any particular person. Therefore, before making any decision, you should consider the appropriateness of the advice with regards to those matters and seek personal financial, tax and/or legal advice prior to acting on this information. Read our Financial Services Guide for information about our services, including the fees and other benefits that AMP companies and their representatives may receive in relations to products and services provided to you.