Testamentary Charitable Trust

A Perpetual Charitable Trust is established through your Will and comes into effect after death. This is an opportunity to continue a lifetime of charitable giving or perhaps to honour the memory of a loved one. Each year, the majority of the Trust’s income will be distributed to charities or charitable causes.

You can nominate specific charities to receive income from the Trust or identify a broader cause you would like to support.

Depending on how your Will is drafted and in some cases who controls the trustee of the Perpetual Charitable Trust, potential advantages may include some or all of the following:

• Asset protection for “at risk” professionals or beneficiaries facing bankruptcy
• Asset protection in the event of marriage or relationship breakdowns
• Asset protection for beneficiaries who may be spendthrifts, addicts or disabled
• Income splitting advantages e.g. adult children and/or other relatives on low incomes
• Income tax advantages where there are minor children/grandchildren (because they are taxed at normal adult rates)
• Flexibility for the trustee to exercise its discretion taking into account the changing needs of the beneficiaries.

These benefits may extend to payments made to the estate in consequence of death e.g. superannuation death benefits or insurance proceeds paid to the estate rather than directly to dependants or nominated beneficiaries.

A Perpetual Charitable Trust is for people who want to leave a lasting, legacy as part of their Will.

Equity Trustees Charitable Foundation (sub-fund), tax deductible donations cannot be made to the Trust once it has been established through the testator’s Will, however, loved ones can still be involved in the management of the Trust as co-Trustees or as grant advisers.

Speak with us today about giving

Want to find out how we can help you achieve your philanthropy goals? Speak with our experienced team today.

Charitable Trusts 1200x250 1