I want to prepare my will and donate everything to charity instead of leaving it to my children. I am 68 years old and a divorcee, with four children who are all well-off. Is there anything I should consider?
—Name withheld on request
We assume that the assets and properties owned by you are all self-acquired and that no other persons have any right or interest in these assets and properties. We also assume that you are a Hindu.
You may donate your entire estate to charity under your Will, and this can be undertaken in multiple ways. You may provide in your Will that your estate be bequeathed to a specific charity or charities; or you may set out the objects towards which your estate shall be donated and empower the executors of your will to determine the specific charity or charities, to which the donation will be made.
Alternatively, you may also set up a charitable trust under your Will, appointing trusted persons to administer the trust as trustees in accordance with the guidance provided by you.
If you wish to donate to existing charities, it is recommended that you clearly mention all relevant details regarding the charitable organizations (such as name, address and branch) in your Will to avoid any confusion.
Also consider having discussions with the charitable organisation in advance since certain conditions and considerations may affect their ability to accept and use the donations, or they may have restrictions in their constitutional documents. For example, there are restrictions on tax-exempt charitable entities being able to hold shares beyond a certain period of time.
You may also specify in your will whether the donation is a corpus or non-corpus donation.
Do bear in mind that if you are donating to a public trust or society in Maharashtra or Gujarat, then after your demise, your executor is legally required to forward a copy of the Will to the relevant Charity Commissioner’s office.
Given the above, it is recommended that you consult with legal professionals who can assist you with preparing your Will and structuring the bequests to charity in an efficient and beneficial manner.
Do also consider the pros and cons of informing your children regarding your intention to bequeath your entire estate to charity, to avoid a challenge to your will or any disputes in future.
—Shaishavi Kadakia is a partner and Suja Nair is an associate at Cyril Amarchand Mangaldas