How to donate a property?

– iyer

(Question answered by Rishabh Shroff, Partner, Cyril Amarchand Mangaldas)

We believe that the property in question is wholly owned, self-acquired, where the person has full legal right to transfer it, as they deem fit. As a possible approach, it would be pertinent to identify a suitable existing NGO, Charity or Cancer hospital etc. Here, once this is understood, the person can bequeath the property to the said entity in his will with clear instructions as to how the property is to be used as identification. Charities/NGOs etc. may have certain compliance conditions that may affect their ability to receive assets as donations, and so this negotiation should take place well in advance. The time between making a will and the actual transfer that takes place after the person’s death can also be extensive, and therefore requires long-term planning. The beneficiary of the said charity or similar property may be named, with careful composition under the will, with instructions on how it is to be used.

Alternatively, if the individual wants more control and direction over how the assets are to be used, they may consider setting up their own charitable trust under their will, and provide appropriate family members/friends. may appoint to establish and administer as trustees. Same. Property can be left on this testamentary trust under the same name, and applied for a specified use such as a cancer hospital. Charitable trusts can be established during the lifetime of the individual, and the assets are then left to charity under his will.

In either option, the property will be transferred only after the death of the person, and will go in accordance with the instructions set forth in the will. Therefore, it would be advisable to consult a consultant to understand how to structure it.

(Send questions and ideas to mintmoney@livemint.com)