We all know the necessity of an estate plan and the importance of a recently updated will and power of attorney documents – especially following major changes in personal circumstances or life. With Australia’s looming intergenerational wealth transfer set to be the largest in history, as referenced in JBWere’s Bequest Report, having the right appointments and documents in place is critical.

Estate planning specialists will often recommend to clients the inclusion of a statement of wishes also known as a letter of wishes, to guide the executor, trustee or beneficiary of a will.

A Letter of Wishes (LoW) is a guide that includes wishes and requests that might pertain to advice on managing an individual’s affairs, personal messages to loved ones or preferences around particular activities, like management of assets or future care of pets or minors. The LoW is different from the will, which is a legally binding document.

Where a Founder has created a structured giving vehicle during their lifetime, such as a private ancillary fund or a public ancillary fund sub-account, it is also highly recommended that philanthropists prepare for the future and create an estate plan that incorporates their giving.

Nominate your Successors

A will-maker will normally nominate loved ones or associates to be the beneficiaries of their estate. Similarly in philanthropy, Founders should consider whom they would like to appoint to continue their philanthropic legacy.

These successors, who might be children, extended family, or even business associates, should be advised to the Trustee of your structured giving vehicle. The appropriate paperwork can then be completed to ensure all is in order.

Once nominated, and when the time is right, successors should be advised of their new responsibility. Ideally successors will have an opportunity to be involved in the family’s philanthropy during the Founder’s lifetime to ensure there is continuity, in terms of the vision and strategy of the family’s giving.

For families where there may not be obvious successors, Equity Trustees as the professional Trustee will uphold your charitable wishes and continue to steward your philanthropic legacy.

Preparing your Letter of Charitable Wishes

To help guide your nominated successors, a Letter of Wishes should be prepared and left with the Trustee for safe keeping. If the Founder is unable to share the details personally, ideally the LoW can:

• Share insights around why the Founder established the structured giving vehicle
• Include stories or reflections that have informed the family’s giving
• Indicate causes or areas of interest or even specific organisations of importance to the Founder and the family, and share why they are important
• Outline any specific wishes around granting

Founders should also indicate if successors can have partial or full discretion around future granting. Some Founders are very happy for the family’s philanthropic legacy to evolve as the next generation steps into the decision-making role.

What happens when…

When a structured giving vehicle does not have nominated successors, and a signed LoW cannot be located, what does the Trustee do?

Equity Trustees has created a Legacy Granting guideline which provides the Trustee with a framework to manage a Founder’s granting strategy, in the event of their passing.

The guideline specifies the various reference materials that will be used to inform future granting, including the will, any codicils to the will, Letters of Wishes, any standing granting instructions, patterns of established giving as well as file notes.

Next steps

Should you require assistance to update your successors or prepare your structured vehicle’s LoW, please reach out to the Equity Trustees Active Philanthropy Team.