With increasing household debt and economic challenges faced by many Australians, wills are being contested more frequently, particularly in the area of family provisions. Consequently, charities are experiencing a decline in donations, making it harder for them to meet the increasing demand for their services. Sydney Translation Services, a leading provider of legal translation services, highlights the importance of safeguarding charitable bequests and ensuring clear communication in the context of wills and estate planning.

Family Provision Claims and the Impact on Charitable Bequests

Family provision claims occur when eligible individuals, such as a spouse, child, or dependent, apply to the court to receive a portion or a larger share of a deceased person’s estate. Often, when a claim is made and a substantial amount is intended for a charitable trust or charity, courts tend to award more to family members instead of the charity, despite the original wishes of the will maker. Additionally, many charities are hesitant to pursue the matter vigorously.

Protecting Charitable Bequests: Strategies for Charities and Will Makers

To protect charitable bequests, both charities and will makers can adopt several strategies:

1. Proactive Approach by Charities Charities should be more proactive in defending their bequests, seek proper legal advice, and engage with the person leaving the funds. They should also consider appearing personally at mediations with their lawyer to clearly explain the intended use of the funds and maintain a strong connection with the will maker.
2. Transparent Communication between Will Makers and Charities Will makers should inform charities about any intended gifts and be aware of the possibility of family provision claims contesting their bequests. Clear communication and documentation of the will maker’s intentions can help to establish a strong relationship between the parties and avoid potential disputes.
3. Establishing Trusts or Funds Will makers can also consider setting up trusts or funds, such as private ancillary funds (PAFs) or sub-funds under a Public Ancillary Fund, as an alternative to making donations through their wills. This can help to avoid the risk of contestation and provide long-term support for the chosen charity.

Exploring Trusts and Funds as an Alternative Route

Apart from using a will, individuals can opt for alternative methods to make charitable donations while they are still alive, effectively sidestepping any risk of contestation. Depending on their circumstances, they can choose to invest in an existing charitable trust or a private ancillary fund (PAF). Structured giving through these vehicles often has a more substantial impact than a single, lump-sum donation to a charity via a will.

For instance, a one-time $1 million donation to a hospital could contribute to the construction of a new wing. However, investing the same amount in a philanthropic trust or foundation allows it to grow over time. As the trust generates income, the hospital may receive millions of dollars across several years, utilizing the funds as needed at any given moment. By establishing this arrangement before passing away, a robust, challenge-resistant vehicle is created, especially against claims from those seeking family provisions.

The Role of Legal Translation Services in Safeguarding Charitable Bequests

In the context of safeguarding charitable bequests, Sydney Translation Services plays a crucial role in providing accurate and timely legal translation services. By ensuring clear communication and understanding of legal documents, such as wills and trusts, these services can help to minimize disputes and ensure the proper execution of a person’s charitable intentions.

Protecting charitable bequests is essential in maintaining the financial stability of charities and fulfilling the original wishes of the will maker. By adopting a proactive approach, fostering transparent communication, and utilizing legal translation services, charities and will makers can work together to safeguard the intended gifts and provide lasting support for the causes they care about.