Nowadays, due to the busy life style we are in, many of my clients have asked me if he/she can mention donations to certain Charities in their Wills. I said ‘Yes’ and they can do donations in several ways:-
- The testator may mention a specific or lump sum amount to be donated to a certain named Charity. ‘I donate RM10, 000.00 to Chi Tzu Merit Society Malaysia’. In this situation, the donation is for once only.
- Some may set up a ‘Charity Trust Fund’ in the Will. Meaning he/she allocates a sum said RM100, 000.00 known as ‘Charity Trust Fund’ in the Will. Instructions is given to the Trustee to donate to Charities named in the Will at a periodic basis using the funds in the ‘Charity Trust Fund’ until the funds in the ‘Charity Trust Fund’ is exhausted.
It is always a good decision to set up a ‘Charity Trust Fund’ in the Will for donations purposes. This is to separate it from other testamentary trusts in the Will.
The funds in the ‘Charity Trust Fund’ can come from the moneys in the banks, or may instruct the Executor to liquidate some movable assets or immovable properties to convert into cash for the ‘Charity Trust Fund’.
The other way to do Charity is via a trust deed. This can be done by setting up a ‘foundation’ or a company. The process is more complicated and costly.
Doing charity is a Will is a good and wise decision as when we are alive; we always neglect this noble duty due to our busy lifestyle or commitment.
To find out how to do charity in a Will or through a Trust, please drop a line to firstname.lastname@example.org.