How to leave a charitable gift in your Will
For many of us, contributing to a charity of choice provides a meaningful and compassionate way to make a difference to a cause that is close to our heart. One way to do this is to make a bequest in our Will, for a portion of our estate assets to be given to one or more charities after we die.
The main types of gifts you can leave in your Will include:
- Residuary bequests – whereby the remainder of your Estate goes to a charity after first leaving gifts to loved ones, and payment of any debts and funeral expenses have been honoured.
- Pecuniary bequests – which clearly specify the donation, whether it be a sum of money, specific property, or stocks and/or shares etc.
- Contingent bequests – which only take effect if certain conditions are met or an event occurs. For example, if one or more beneficiaries predecease you, then you can bequeath (all or part of) their share of your estate to your charity of choice.
- Percentage or fractional bequests – which consider the changing value of your Estate which can occur due to factors such as inflation, property fluctuations and changes to the composition of your Estate over time.
- Whole estate bequests – usually left by those without family or other preferred beneficiaries, or those wanting to achieve something significant with their gift.
If you wish to bequeath a gift to a charity, leaving instructions behind in a Will is the only way to ensure that your wishes are followed through with. This can be done either by creating a new Will if you don’t have one; revoking an existing Will and writing a new one; or adding a codicil to your existing Will.
A codicil is simply an additional section attached to your existing Will. Often this is all that is required if you are making minor changes. If you are making significant changes, you will likely need to write a new Will. To update your Will with a codicil you must:
- Identify the exact section in your Will that you wish to update and clearly reference it with the new information you wish to include;
- Use the same language in your codicil that is used in your Will;
- Include a sentence that references your original Will by date;
- After adding your new provisions, include a sentence indicating that the rest of the Will shall remain as it is; and
- Ensure that the codicil is signed, dated, and kept in a safe place with the original Will.
A Scammell & Co Wills and Estates lawyer has the expertise to ensure your Will is a recognised legal document, and that your intentions are clear and will be carried out as you wish. Moreover, they can draft specific instructions on how your charitable gift is to be used if, for example, you wish to support one specific aspect of a charity’s work.
For further information about Wills and Estate Planning please follow the link here
*This information is current at the time of publication. For accurate legal advice, please contact Scammell & Co on 08 8440 270.
Having a valid and up-to-date Will in place provides peace of mind
There is nothing like the threat of a coronavirus to give people pause to consider the importance of having a valid and up-to-date Will in place.
A Will is a legal document that sets out your final wishes. In accordance with the Wills Act 1936 (SA) a valid Will is one that meets specific technical requirements. These include the Will being in written format, signed by the testator (the person making the Will) in the presence of two independent witnesses (18+ years of age) who are present at the same time. The signatures of the witnesses must be made in the presence of the testator. Given current government-enforced social distancing rules, executing a Will correctly is easier said than done. However, there are solutions to this dilemma and our Wills and Estates team can help to ensure your Will is valid. A Will should also be drafted and signed by someone of sound mind, memory and understanding - without any undue influence.
A Will should reflect your current wishes and circumstances. As a guide you should review your Will every few years. Changes to your circumstances can include events such as marriage, separation or divorce; you may have become a parent or grandparent; bought or sold assets; retired or lost a loved one. A Scammell & Co. Wills and Estates lawyer can advise on the most appropriate Will structure which considers your asset pool, the best interests of you and your beneficiaries and tax liabilities or potential tax savings.
You should also consider having a Power of Attorney and an Advance Care Directive in place in the event you are mentally incapacitated. These documents allow people you know and trust to make decisions about your medical treatment, wellbeing and financial affairs if you can no longer make such decisions for yourself.
For further information please refer to our comprehensive Wills & Estates section.
*This information is current at the time of publication. For accurate legal advice, please contact Scammell & Co on 08 8440 270.
Joint Tenants vs. Tenants in Common explained
When two or more people purchase property together there are two options available to them in how they wish to hold the property.
The most common form of ownership amongst couples is Joint Tenants. This means that when one person dies the property will automatically pass to the surviving registered owner under the rule of survivorship.
The other option is Tenants in Common which means each person owns a portion or percentage in the property. This is more commonly used in the purchase of an investment property. In the event one person dies their portion forms part of their estate and is dealt with in accordance with their Will or in the absence of a Will, under the laws of intestacy.
Seeking legal advice will ensure you are informed of potential issues. For example, in the case of Joint Tenants, if you have children from a previous relationship and you die, the property will pass to your partner. Your partner could then update their Will to exclude your children from inheriting, and unless they are dependent on your partner they are unlikely to have a claim against your partner’s estate.
*This information is current at the time of publication. For accurate legal advice, please contact Scammell & Co on 08 8440 270.