Donations: transfer of financial instruments by way of a bank

October 10, 2019 Categorised in:

Donations: the transfer of financial instruments by way of a bank performed in charitable spirit does not constitute an indirect donation, but a typical donation as the transfer is carried out by the intermediary merely in execution of an order of the settlor.

The Combined Sections with ruling 27 July 2017, no. 18725, established that the transfer in charitable spirit of financial instruments from the securities deposit account of the donor to that of the beneficiary realised by way of the bank, through the execution of a bank transfer order imparted by the settlor, does not constitute a indirect donation, but a typical donation.

This results in the need for the deed to be stipulated between the donor and the beneficiary in the form of a public deed, except in the case of a donation of small value.