Will clauses
A gift made after the donor’s death, as described in the donor’s Will, is called a bequest. To assist donors and their solicitors, the University suggests the following Will clauses to describe:
- a bequest for:
- the general purposes of the University;
- the educational purposes of the University;
- a particular Faculty or School of the University ;
- the University Libraries;
- a bequest to establish a perpetual trust for:
- a stated purpose
- scholarships;
- bursaries;
- prizes;
- research;
- research scholarships;
- fellowships
- lectureships; and
- books, publications and other library materials
- as the University is a charitable institution, for any bequest to the University there is no need to state ‘… and I declare that the receipt of the Vice-Chancellor or other proper officer of the University will be a good and sufficient discharge to my trustees and that my trustees will not be obliged to see to the application of the gift’: see section 6 of the Charities Act 1978 (Victoria);
- there is no need to specify in a donor’s Will a particular manner or form of investment for a bequest to the University, as section 40 of the University of Melbourne Act 2009 (Victoria) permits the University to invest endowment funds in the manner authorised by the Trustee Act 1958 (Victoria); and
- for a bequest to the University there is no need to specify that, where a perpetual charitable trust is created, a portion of income be retained to protect against capital depreciation, as section 39(1) of the University of Melbourne Act 2009 (Victoria) permits the addition of a portion of income from an investment pool to be added to the capital of the pool ‘as a provision against depreciation or reduction in income’.
An inflation clause is provided for inclusion in clauses for a specific bequest.
It must be stressed that donors preparing their Wills need to obtain their own advice on the terms of their Wills, as these clauses are samples only and may not be suitable for the particular purpose under consideration.
As explained elsewhere, a bequest to the University can take the form of a residuary bequest or a specific bequest (including a specified sum, called a legacy). Sample clauses are provided for residuary bequests and for specific bequests (legacies).
Where a donor’s Will gives a legacy to the University, the Will should state that the specified sum be adjusted for inflation. A sample inflation clause is included for that purpose.
When drafting a bequest to the University, donors and their solicitors might consider the various groups at the University who would particularly benefit from financial support not otherwise linked to academic or other forms of performance, including students in financial need, disabled students, and indigenous students.
Will drafters, please note:
Following is a list of sample Will clauses to describe the purpose of various bequests, including bequests that establish a perpetual charitable trust. The sample clauses begin with broad purposes, moving to more specific purposes.
A bequest for general purposes of the University
The general purposes of the University include the educational purposes of the University (namely research, learning and teaching, knowledge transfer) and also the ancillary functions of the University (including the construction and maintenance of the University buildings and grounds).
In these examples a perpetual charitable trust is not established, and the University will apply the bequest for the projects that have top priority at the time of the bequest:Residuary bequest
I give [insert percentage] of my residuary estate ('the bequest') to The University of Melbourne of Grattan Street, Parkville, Victoria ABN 84 002 705 224 ('the University'), for the general purposes of the University, and the bequest is to be known as 'The [insert title] Bequest'.
Specific bequest
I give [insert dollar amount] ('the bequest') to The University of Melbourne of Grattan Street, Parkville, Victoria ABN 84 002 705 224 ('the University'), for the general purposes of the University, and the bequest is to be known as 'The [insert title] Bequest'. Please consider including the Inflation clause.
A bequest for educational purposes of the University
The University’s educational purposes comprise research, learning and teaching, and knowledge transfer.
In these examples a perpetual charitable trust is not established, and the University will apply the bequest for the educational projects that have top priority at the time of the bequest:
Residuary bequest
I give [insert percentage] of my residuary estate ('the bequest') to The University of Melbourne of Grattan Street, Parkville, Victoria ABN 84 002 705 224 ('the University') for the educational purposes of the University, and the bequest is to be known as 'The [insert title] Bequest'.
Specific bequest
I give [insert dollar amount] ('the bequest') to The University of Melbourne of Grattan Street, Parkville, Victoria ABN 84 002 705 224 ('the University') for the educational purposes of the University, and the bequest is to be known as 'The [insert title] Bequest'. Please consider including the Inflation clause.
A bequest for a Faculty or School
In these examples a perpetual charitable trust is not established, and the University will apply the bequest for the projects in the named faculty or school that have top priority at the time of the bequest:
Residuary bequest
I give [insert percentage] of my residuary estate ('the bequest') to The University of Melbourne of Grattan Street, Parkville, Victoria ABN 84 002 705 224 ('the University') for research, learning and teaching, and knowledge transfer in [insert name of Faculty or School] at the University, and the bequest is to be known as 'The [insert title] Bequest'.
Specific bequest
I give [insert dollar amount] ('the bequest') to The University of Melbourne of Grattan Street, Parkville, Victoria ABN 84 002 705 224 ('the University') research, learning and teaching, and knowledge transfer in [insert name of Faculty or School] at University, and the bequest is to be known as 'The [insert title] Bequest'. Please consider including the Inflation clause.
A bequest to establish a perpetual charitable trust for a stated purpose
In these examples a donor establishes a perpetual charitable trust for a stated purpose:
Residuary bequest
I give [insert percentage] of my residuary estate to The University of Melbourne of Grattan Street, Parkville, Victoria ABN 84 002 705 224 ('the University') to support in perpetuity [insert purpose – see Describing gifts] ('the stated purpose'), and the bequest is to be known as 'The [insert title] Bequest'. Any unexpended income arising from the bequest in any year may be retained as income and be available in a subsequent year for the stated purpose, or may be added to the capital of the bequest for the stated purpose. If at any time the University determines that it is impossible or impracticable to carry out the stated purpose then the University may apply the income of the bequest for such purpose or purposes as the University determines most closely accords with the stated purpose.
Specific bequest
I give [insert dollar amount] ('the bequest') to The University of Melbourne of Grattan Street, Parkville, Victoria ABN 84 002 705 224 ('the University') to support in perpetuity [insert purpose – see Describing gifts] ('the stated purpose'), and the bequest is to be known as 'The [insert title] Bequest'. Any unexpended income arising from the bequest in any year may be retained as income and be available in a subsequent year for the stated purpose, or may be added to the capital of the bequest for the stated purpose. If at any time the University determines that it is impossible or impracticable to carry out the stated purpose then the University may apply the income of the bequest for such purpose or purposes as the University determines most closely accords with the stated purpose. Please consider including the Inflation clause.
A bequest to establish a perpetual charitable trust for bursaries
In these examples a donor establishes a perpetual charitable trust for bursaries:Residuary bequest
I give [insert percentage] of my residuary estate ('the bequest') to The University of Melbourne of Grattan Street, Parkville, Victoria ABN 84 002 705 224 ('the University') to establish in perpetuity one or more bursaries for [insert purpose – see Describing the purpose ] ('the stated purpose'), and each bursary is to be called ‘The [insert title] Bursary’. Any unexpended income arising from the bequest in any year may be retained as income and be available in a subsequent year for the stated purpose, or may be added to the capital of the bequest for the stated purpose. If at any time the University determines that it is impossible or impracticable to carry out the stated purpose then the University may apply the income of the bequest for such purpose or purposes as the University determines most closely accords with the stated purpose.
Specific bequest
I give [insert dollar amount] ('the bequest') to The University of Melbourne of Grattan Street, Parkville, Victoria ABN 84 002 705 224 ('the University') to establish in perpetuity one or more bursaries for [insert purpose – see Describing the purpose] ('the stated purpose'), and each bursary is to be called ‘The [insert title] Bursary’. Any unexpended income arising from the bequest in any year may be retained as income and be available in a subsequent year for the stated purpose, or may be added to the capital of the bequest for the stated purpose. If at any time the University determines that it is impossible or impracticable to carry out the stated purpose then the University may apply the income of the bequest for such purpose or purposes as the University determines most closely accords with the stated purpose. Please consider including the Inflation clause.
A bequest to establish a perpetual charitable trust for scholarships
In these examples a donor establishes a perpetual charitable trust for scholarships:Residuary bequest
I give [insert percentage] of my residuary estate ('the bequest') to The University of Melbourne of Grattan Street, Parkville, Victoria ABN 84 002 705 224 ('the University') to establish in perpetuity one or more scholarships for [insert purpose – see Describing the purpose] ('the stated purpose'), and each scholarship is to be called ‘The [insert title] Scholarship’. Any unexpended income arising from the bequest in any year may be retained as income and be available in a subsequent year for the stated purpose, or may be added to the capital of the bequest for the stated purpose. If at any time the University determines that it is impossible or impracticable to carry out the stated purpose then the University may apply the income of the bequest for such purpose or purposes as the University determines most closely accords with the stated purpose.
Specific bequest
I give [insert dollar amount] ('the bequest') to The University of Melbourne of Grattan Street, Parkville, Victoria ABN 84 002 705 224 ('the University') to establish in perpetuity one or more scholarships for [insert purpose – see Describing the purpose] ('the stated purpose'), and each scholarship is to be called ‘The [insert title] Scholarship’. Any unexpended income arising from the bequest in any year may be retained as income and be available in a subsequent year for the stated purpose, or may be added to the capital of the bequest for the stated purpose. If at any time the University determines that it is impossible or impracticable to carry out the stated purpose then the University may apply the income of the bequest for such purpose or purposes as the University determines most closely accords with the stated purpose. Please consider including the Inflation clause.
A bequest to establish a perpetual charitable trust for prizes
In these examples a donor establishes a perpetual charitable trust for prizes:Residuary bequest
I give [insert percentage] of my residuary estate ('the bequest') to The University of Melbourne of Grattan Street, Parkville, Victoria ABN 84 002 705 224 ('the University') to establish in perpetuity one or more prizes for the top student in one or more subjects in the area of [insert field / discipline of study – see Study Disciplines] ('the stated purpose'), and each prize is to be called ‘The [insert title] Prize’. Any unexpended income arising from the bequest in any year may be retained as income and be available in a subsequent year for the stated purpose, or may be added to the capital of the bequest for the stated purpose. If at any time the University determines that it is impossible or impracticable to carry out the stated purpose then the University may apply the income of the bequest for such purpose or purposes as the University determines most closely accords with the stated purpose.
Specific bequest
I give [insert dollar amount] ('the bequest') to The University of Melbourne of Grattan Street, Parkville, Victoria ABN 84 002 705 224 ('the University') to establish in perpetuity one or more prizes for the top student in one or more subjects in the area of [insert field / discipline of study – see Study Disciplines] ('the stated purpose'), and each prize is to be called ‘The [insert title] Prize’. Any unexpended income arising from the bequest in any year may be retained as income and be available in a subsequent year for the stated purpose, or may be added to the capital of the bequest for the stated purpose. If at any time the University determines that it is impossible or impracticable to carry out the stated purpose then the University may apply the income of the bequest for such purpose or purposes as the University determines most closely accords with the stated purpose. Please consider including the Inflation clause.
A bequest to establish a perpetual charitable trust for research
In these examples a donor establishes a perpetual charitable trust for research:Residuary bequest
I give [insert percentage] of my residuary estate (‘the bequest’) to The University of Melbourne of Grattan Street, Parkville, Victoria ABN 84 002 705 224 ('the University') to fund in perpetuity research in the field of [insert field / discipline of study – see Study Disciplines] ('the stated purpose'), and each research grant is to be called ‘The [insert title] Research Grant’. Any unexpended income arising from the bequest in any year may be retained as income and be available in a subsequent year for the stated purpose, or may be added to the capital of the bequest for the stated purpose. If at any time the University determines that it is impossible or impracticable to carry out the stated purpose then the University may apply the income of the bequest for such purpose or purposes as the University determines most closely accords with the stated purpose.
Specific bequest
I give [insert dollar amount] ('the bequest') to The University of Melbourne of Grattan Street, Parkville, Victoria ABN 84 002 705 224 ('the University') to fund in perpetuity research in the field of [insert field / discipline of study – see Study Disciplines] ('the stated purpose'), and each research grant is to be called ‘The [insert title] Research Grant’. Any unexpended income arising from the bequest in any year may be retained as income and be available in a subsequent year for the stated purpose, or may be added to the capital of the bequest for the stated purpose. If at any time the University determines that it is impossible or impracticable to carry out the stated purpose then the University may apply the income of the bequest for such purpose or purposes as the University determines most closely accords with the stated purpose. Please consider including the Inflation clause.
A bequest to establish a perpetual charitable trust for research scholarships
In these examples a donor establishes a perpetual charitable trust for research scholarships:Residuary bequest
I give [insert percentage] of my residuary estate (‘the bequest’) to The University of Melbourne of Grattan Street, Parkville, Victoria ABN 84 002 705 224 ('the University') to fund in perpetuity one or more scholarships for students who are undertaking research in the field of [insert field / discipline of study – see Study Disciplines] ('the stated purpose'), and each scholarship is to be called 'The [insert title] Research Scholarship'. Any unexpended income arising from the bequest in any year may be retained as income and be available in a subsequent year for the stated purpose, or may be added to the capital of the bequest for the stated purpose. If at any time the University determines that it is impossible or impracticable to carry out the stated purpose then the University may apply the income of the bequest for such purpose or purposes as the University determines most closely accords with the stated purpose.
Specific bequest
I give [insert dollar amount] ('the bequest') to The University of Melbourne of Grattan Street, Parkville, Victoria ABN 84 002 705 224 ('the University') to fund in perpetuity one or more scholarships for students who are undertaking research in the field of [insert field / discipline of study – see Study Disciplines]('the stated purpose'), and each research grant is to be called ‘The [insert title] Research Scholarship’. Any unexpended income arising from the bequest in any year may be retained as income and be available in a subsequent year for the stated purpose, or may be added to the capital of the bequest for the stated purpose. If at any time the University determines that it is impossible or impracticable to carry out the stated purpose then the University may apply the income of the bequest for such purpose or purposes as the University determines most closely accords with the stated purpose. Please consider including the Inflation clause.
A bequest to establish a perpetual charitable trust for fellowships
In these examples a donor establishes a perpetual charitable trust for fellowships:Residuary bequest
I give [insert percentage] of my residuary estate (‘the bequest’) to The University of Melbourne of Grattan Street, Parkville, Victoria ABN 84 002 705 224 ('the University') to fund in perpetuity one or more fellowships in the faculty of [insert name of faculty] ('the stated purpose'), and each fellowship is to be called 'The [insert title] Fellowship'. Any unexpended income arising from the bequest in any year may be retained as income and be available in a subsequent year for the stated purpose, or may be added to the capital of the bequest for the stated purpose. If at any time the University determines that it is impossible or impracticable to carry out the stated purpose then the University may apply the income of the bequest for such purpose or purposes as the University determines most closely accords with the stated purpose.
Specific bequest
I give [insert dollar amount] ('the bequest') to The University of Melbourne of Grattan Street, Parkville, Victoria ABN 84 002 705 224 ('the University') to fund in perpetuity one or more fellowships in the faculty of [insert name of faculty] ('the stated purpose'), and each fellowship is to be called 'The [insert title] Fellowship'. Any unexpended income arising from the bequest in any year may be retained as income and be available in a subsequent year for the stated purpose, or may be added to the capital of the bequest for the stated purpose. If at any time the University determines that it is impossible or impracticable to carry out the stated purpose then the University may apply the income of the bequest for such purpose or purposes as the University determines most closely accords with the stated purpose. Please consider including the Inflation clause.
A bequest to establish a perpetual charitable trust for lectureships
In these examples a donor establishes a perpetual charitable trust for lectureships:Residuary bequest
I give [insert percentage] of my residuary estate (‘the bequest’) to The University of Melbourne of Grattan Street, Parkville, Victoria ABN 84 002 705 224 ('the University') to support in perpetuity the appointment of one or more persons distinguished in the field of [insert field / discipline of study – see Study Disciplines] as a [visiting] lecturer together with all costs arising from that appointment ('the stated purpose'), and each lectureship is to be called ‘The [insert title] Lectureship’. Any unexpended income arising from the bequest in any year may be retained as income and be available in a subsequent year for the stated purpose, or may be added to the capital of the bequest for the stated purpose. If at any time the University determines that it is impossible or impracticable to carry out the stated purpose then the University may apply the income of the bequest for such purpose or purposes as the University determines most closely accords with the stated purpose.
Specific bequest
I give [insert dollar amount] ('the bequest') to The University of Melbourne of Grattan Street, Parkville, Victoria ABN 84 002 705 224 ('the University') to support in perpetuity the appointment of one or more persons distinguished in the field of [insert field / discipline of study – see Study Disciplines] as a [visiting] lecturer together with all costs arising from that appointment ('the stated purpose'), and each lectureship is to be called ‘The [insert title] Lectureship’. Any unexpended income arising from the bequest in any year may be retained as income and be available in a subsequent year for the stated purpose, or may be added to the capital of the bequest for the stated purpose. If at any time the University determines that it is impossible or impracticable to carry out the stated purpose then the University may apply the income of the bequest for such purpose or purposes as the University determines most closely accords with the stated purpose. Please consider including the Inflation clause.
A bequest for the libraries at the University
In these examples a perpetual charitable trust is not established and the University will apply the bequest for the projects at the libraries that have top priority at the time of the bequest:
Residuary bequest
I give [insert percentage] of my residuary estate (‘the bequest’) to The University of Melbourne of Grattan Street, Parkville, Victoria ABN 84 002 705 224 ('the University') for the libraries of the University, and the bequest is to be called ‘The [insert title] Libraries Bequest’.
Specific bequest
I give [insert dollar amount] ('the bequest') to The University of Melbourne of Grattan Street, Parkville, Victoria ABN 84 002 705 224 ('the University') for the libraries of the University, and the bequest is to be called ‘The [insert title] Libraries Bequest’. Please consider including the Inflation clause.
A bequest to establish a perpetual charitable trust for books, publications and other library materials
Apart from the introductory words, the following 2 clauses are identical. In these examples a donor establishes a perpetual charitable trust for books, publications and other library materials:Residuary bequest
I give [insert percentage] of my residuary estate (‘the bequest’) to The University of Melbourne of Grattan Street, Parkville, Victoria ABN 84 002 705 224 ('the University') to support in perpetuity the purchase or the subscription by the libraries of the University of or to books, periodicals, data, records, recordings and publications in any form or format, together with the cataloguing, storage, distribution, promotion, licensing, maintenance, conservation and preservation of all items held by those libraries, whenever acquired (including the employment of staff to undertake those tasks) (‘the stated purpose’), and the trust so established is to be called ‘The [insert title] Libraries Trust’. Any unexpended income arising from the bequest in any year may be retained as income and be available in a subsequent year for the stated purpose, or may be added to the capital of the bequest for the stated purpose. If at any time the University determines that it is impossible or impracticable to carry out the stated purpose then the University may apply the income of the bequest for such purpose or purposes as the University determines most closely accords with the stated purpose.
Specific bequest
I give [insert dollar amount] ('the bequest') to The University of Melbourne of Grattan Street, Parkville, Victoria ABN 84 002 705 224 ('the University') to support in perpetuity the purchase or the subscription by the libraries of the University of or to books, periodicals, data, records, recordings and publications in any form or format, together with the cataloguing, storage, distribution, promotion, licensing, maintenance, conservation and preservation of all items held by those libraries, whenever acquired (including the employment of staff to undertake those tasks) (‘the stated purpose’), and the trust so established is to be called ‘The [insert title] Libraries Trust’. Any unexpended income arising from the bequest in any year may be retained as income and be available in a subsequent year for the stated purpose, or may be added to the capital of the bequest for the stated purpose. If at any time the University determines that it is impossible or impracticable to carry out the stated purpose then the University may apply the income of the bequest for such purpose or purposes as the University determines most closely accords with the stated purpose. Please consider including the Inflation clause.
Inflation Clause
The bequest is to be adjusted for inflation by applying the following formula:
N = (S x B) / A
where:
N represents the adjusted amount payable to the University;
S represents the sum stated in this clause;
B represents the Consumer Price Index All Groups, Weighted Average of Eight Capital Cities (‘CPI’) figure published quarterly by the Australian Bureau of Statistics immediately before the date of my death; and
A represents the CPI quarterly figure published immediately before the date of this my Will.
If at the time of my death the CPI is no longer calculated and published on a quarterly basis, then I direct my trustees to adjust the bequest for inflation using such other statistic or measure as is chosen by my trustees in their absolute discretion.