What is a Charitable Trust?
A charitable trust is set up to hold and protect some or all of your assets specifically for charitable purposes and allows you to support causes and charities on an ongoing basis.
How does a Charitable Trust work?
Unlike other trusts, a charitable trust is perpetual and has no vesting date. In other words, it can “live forever”. It is also exempt from income tax and Value Added Tax (VAT).
In order to become a charitable trust and receive these benefits, this trust must fall within legal requirements under the Charitable Trusts Act.
You can set up a charitable trust during your lifetime under a trust deed or choose to set it up after you’re gone as part of your will. You decide the purpose of the trust, what you’d like it to benefit (and how), and you can donate as much as you want.
What’s involved in setting up a Charitable Trust
There are three parties in a trust:
- SETTLOR – A person who sets up a trust.
- BENEFICIARIES – Are the people/charity the trust will benefit.
- TRUSTEES – People who will run the trust and look after the assets.
When you set up a charitable trust, we will create a charitable trust deed with the details of how the trust will operate. You’ll need to select trustees, who make sure the trust operates as set out in the trust deed. You can appoint yourself as a trustee to have a say in guiding the trust. You also will decide who will benefit from the charitable trust; the name of the charity.
Registration of a Charitable Trust
In Fiji, charitable trusts are normally applied to be registered at the Titles Office under the Charitable Trusts Act. This has the effect of incorporating them and assists to obtain tax exemptions.
A separate application must then be made to Fiji Revenue and Customs Service for exemption from income tax and VAT.
Generally, income will either be taxed in the hands of the trustees as trustee income or in the hands of the beneficiary if the trustees decide to pay income to beneficiaries.
Why set up your Charitable Trust with us?
Setting up a trust requires sound advice and legal expertise. The Fiji Public Trustee Corporation Pte Limited is Fiji’s only Trustee Service provider with over 40 years of experience. Our team can tailor make your trust, making things easy for you.
The Fiji Public Trustee can also provide independent specialist trustee services for the life of your chairtable trust. We’ll make sure that trust documents are safe, accurate records are kept and that all tax and other legal requirements are met. We’ll also keep you up to date on the legal changes that will affect your trust.
Administrative Fees- Annual
|Activity||Minimum Fee (Excluding VAT)|
|Preparation of Deed and Trust registration||$700|
|Annual administrative fee||1.25% (percentage of gross value assets under administration)|
|Income Handling Fees||5% (of total amount plus VAT received)|
|Preparation of Deed||$500|
|Preparation and lodgment of income tax returns||$150 (plus, disbursements)|
Charitable Trust Checklist
The requirements for setting up a Family Trust with us are as follows:
- Original Identification
- Bank Statements
- TIN Letters
- Assets Identified
- Details of Beneficiaries selected
Types of charitable trust
A charitable trust can be created during the lifetime of the client by a deed of settlement or trust deed (‘Lifetime Trust’). It can also be created in the client’s Will to take effect on death (‘Will Trust’).
Fiji Public Trustee provides an extensive range of services and these include:
- Deceased Estates Administration
- Will Drafting
- Power of Attorney
- Executor Services
- Other Legal Services
- Preparation of Sale and Purchase agreements
- Preparation of Deed Poll
- Preparation of other legal documents
- Deed of Undertaking
- Living Transfers
- Preparations of Motions & Affidavits