Charities and your will

Charitable giving in wills

People include charities in their wills for many reasons, including:

• Supporting causes they value
• Continuing long-standing charitable involvement
• Making a contribution beyond their immediate family
• Reflecting personal values and purpose

For some, charitable gifts sit alongside family provisions; for others, they are a central part of their legacy.

How charitable gifts are structured

Charitable gifts in wills are commonly made in different forms, such as:

• A specific sum of money
• A percentage of the estate
• A residual gift after other distributions
• A gift of a specific asset

Each approach has different implications depending on the estate and family circumstances.

Tax treatment of charitable gifts

In Australia, gifts to registered charities through a will may have different tax consequences compared with gifts made during life.

At a general level:

• Some charitable gifts can be tax-effective
• Tax treatment depends on the type of charity and the structure of the gift
• Estate taxation issues can differ from personal income tax considerations

Because tax outcomes vary, professional advice is often required to understand specific implications.

Impact on family and dependants

Including charities in a will can affect how an estate is distributed among family members.

Common considerations include:

• Ensuring dependants are adequately provided for
• Managing expectations and communication within families
• Reducing the risk of disputes or misunderstandings
• Understanding family provision laws that may apply

Clear documentation and explanation often help reduce uncertainty.

Finding an appropriate balance

Many people aim to balance charitable intentions with family responsibilities.

This may involve:

• Combining charitable gifts with family distributions
• Using percentages rather than fixed amounts
• Reviewing arrangements as circumstances change

There is no single approach that suits all families.

Points to be aware of

Some charities promote online or low-cost will services, often described as "free wills", in exchange for encouraging charitable gifts.

Points commonly raised about these arrangements include:

• The service may be limited in scope
• The provider may not fully explore complex family or asset situations
• There may be an implicit expectation of a charitable gift
• The will may not be tailored to more complex circumstances

These services can be appropriate for some people, but may not suit everyone.

When extra care may be needed

Extra care is often required where:

• Family arrangements are complex
• Significant assets or businesses are involved
• Dependants have special needs
• Multiple charities are included
• Cross-border or tax issues apply

In such cases, additional review or professional input may be important.

Clarity and review

Where charitable gifts are included:

• Clear wording helps ensure intentions are understood
• Regular review helps keep arrangements current
• Consistency across documents reduces confusion

Clarity can help protect both family relationships and charitable intentions.