Vietnam: How to establish charity funds under testaments?

According to Article 2 of Circular No. 02/2013/TT-BNV of the Ministry of Home Affairs of Vietnam, in case of fund establishment under testaments, the testaments of persons donating inheritance assets to Vietnamese citizens, organizations with obligation of implementing request for fund establishment must be made under the notarized written testaments or authenticated written testaments as prescribed by law.

Besides, Circular No. 02/2013/TT-BNV also stipulates that the fund establishment at the request of the asset donors through authorization contracts mean case when the asset donors donate assets for the party receiving the donation (citizens or organizations) provided that the party receiving the asset donation will be responsible for establishing fund through authorization contract with role as founding member of fund. The authorization contracts must be made in writing and notarized as prescribed by law.

Notably, in case where citizens or organizations receiving inherit or asset donation fail to have enough number of founding members for fund establishment as prescribed in clause 2 Article 9 of Decree No. 30/2012/ND-CP of Vietnam’s Government, the citizens or organizations receiving inherit or asset donation are responsible for supplementing sufficient number of founding members as prescribed, these supplemented founding members are not required to contribute assets for fund establishment as prescribed in clause 1 Article 9 of Decree No. 30/2012/ND-CP.

Relevant provisions can be found in Circular No. 02/2013/TT-BNV of the Ministry of Home Affairs of Vietnam, which takes effect from June 01, 2013.

Thu Ba

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