Charitable Trust through Fiduciary / Family Office

This example shows how a more complex legacy donation can be structured through a charitable foundation and charitable trust.

“When a client feels passionately about giving something back, it is very humbling to be entrusted with the responsibility to ensure their legacy makes a positive difference to causes that are close to their hearts.”
Wealth Adviser (Fiduciary/Family Office)

In this case study, the advisory firm played several roles, supporting the donor in writing a Will that articulated their charitable goals and, once the supporter passed away, ensuring the terms of the Will were met. This included setting up a charitable foundation and trust, structured as below.

In accordance with the last Will and testament of the testator, a foundation was set up to specifically promote the study of botany, meeting the conditions as stated in the constitution as passed by a court order. The foundation is a registered charity. There are personal trustees involved in the foundation (i.e. friends/ family).

The foundation was gifted ownership of the land where the foundation is physically located and where the plants are cultivated. A company was gifted in accordance with the testator's wishes to the foundation at the time it was set up, as stated in the constitution document of the foundation. The company provides the finances and bank accounts to assist with the day-to-day running of the foundation.

Aside from the foundation and the company, there’s also the charitable trust, which was settled by a declaration of trust and which is also a registered charity. It was established to promote, facilitate and encourage the study of plants and specifically to support the work of the foundation.

The funding that is ultimately provided to the foundation is generated from the assets that were settled into the charitable trust, comprising both commercial and residential properties. Rental income earned from the properties is paid from time to time by way of a dividend to the charitable trust for onward distribution to the foundation, and cash, which was invested into an investment portfolio with a wealth manager. The portfolio is designed to provide income which is paid up to the charitable trust as a part loan repayment and then distributed onwards to the foundation.

This highlights some of the complexities that might be involved with multiple assets and structures potentially used to maximise the benefit to all beneficiaries, charities and family.