By the end of this year, an extraordinary $150 billion in inheritances is expected to have been transferred, with a further $5.4 trillion projected over the next two decades*.

This article gives an overview of how to incorporate structured giving into your legacy and estate planning to establish a meaningful and lasting connection with the organisations and causes you care about – one that can extend well beyond your lifetime.

For clients at Australian Philanthropic Services (APS), structured giving not only brings purpose and joy during their lifetime but is also becoming an integral cornerstone of legacy and estate planning.

Recognising the growing interest in integrating giving structures into legacy and estate plans, APS will launch its Giving Legacy service in February 2025. This service will equip clients and their professional advisers with tools and resources to thoughtfully plan their philanthropic legacy and ensure a smooth and secure transition of stewardship in the event of death or incapacity.

Read more on giving structures & legacy planning

Here are five considerations at the intersection of death, taxes, and giving structures.

1. Your Will governs your personal assets, not the assets of your fund

Your Will distributes estate assets that you own in your name or as tenants in common. It cannot distribute the assets already held within your fund, but it can distribute assets from your estate to your fund.

2. Your Giving Plan governs your legacy

A Giving Plan serves as a personal roadmap for the future stewards of your fund, capturing your charitable intentions and providing a structured way to communicate your vision. To help your successor(s) understand your values and priorities for giving, we encourage you to establish a Giving Plan.

3. APS Foundation as a succession solution

The APS Foundation offers a practical solution for some of our clients including those without a successor to continue their legacy and those who value the simplicity and assurance of professional stewardship. Through tools like Wills, Giving Plans, and succession solutions with the APS Foundation, you can maximise the impact of your philanthropy while offering clarity and guidance to those who will carry your legacy forward.

4. Giving while living is the most tax effective option

When it comes to giving, there is no option more tax-effective than giving during your lifetime.

5. Giving on death can offer CGT relief

There are also potentially tax advantages for charitable gifts made at the time of your death. If your estate includes highly appreciated assets, incorporating a gift of these assets to your fund can provide substantial Capital Gains Tax (CGT) relief.

*JBWere Bequest Report

The information provided is of a general nature and should not be considered legal or financial advice.

To find out more, or to discuss your personal circumstances, please contact us.

Published 20 December 2024