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Charity

https://www.terentia.co.in/

Case Study No 4 – Charity

A First-generation business house having interest in automobiles, Engineering, and earth moving equipment manufacturing. Two Listed companies held between two brothers through a few Pvt. Ltd companies & individual name.
Both brothers (promoters) in the mid-70s had no children. So, they wanted a structure to be put in place where they would transfer all the wealth for the love of the city that they earned wealth from. In their life time, the trust would take care of them and their respective spouses.

Family Tree:

Assets:

  • 2 Listed companies
  • 12 Private Limited Companies holdings, businesses, properties & investments
  • Automobile Company
  • Arts
  • Jewelry
  • MF / FD etc.
  • Residential Properties

Objective of Family – Part 1:

  1. After the demise of all the Primary beneficiaries the Bungalow and the art would be used for the Museum / Art Gallery Purposes.
  2. Transfer of all the family assets (Movable) to the trust, for e.g. Equity holdings, Fixed deposits, Bonds, Bank accounts, etc.
  3. Provision of the Trust to take care of family members during their lifetime and to take care of any unexpected contingencies.
  4. Provision in the Trust to take care of daily maintenance, medical emergencies & facilities of all the beneficiaries during their lifetime.
  5. Provision for assets to be used and conversion of same to make a museum and the funds thereby realised from the same to be used for charitable purposes.
  6. Clear demarcation of assets to be used for specific charity.
  7. Defining the proportion and limitations for each charitable purpose.
  8. Making provision for long term and ongoing charity.
  9. Plan to sell of the company in next 3 years and transfer the proceeds to the trust.

Structure:

  1. Two Separate Trusts for two brothers
  2. Charitable Trusts were brought under the structure
  3. Family office, Family Budgets and Charity objectives woven with a intra Trust Agreement
  4. Health care and special needs allocation done
  5. Investment Policy was defined
  6. Advisory Board set up
  7. Guidelines defined for Advisory Board