Estate Planning Newsletter

• Revocable Bank Deposit Totten Trusts
  A decedent’s assets may be transferred upon their death to their heirs or other beneficiaries through probate. “Probate” is the legal process by which a court determines who receives a decedent’s assets under... Read more.
• Life Insurance Policies and Marital Settlement Agreements
  Many marital settlement agreements require one party to maintain a life insurance policy on his or her life naming the former spouse as the primary beneficiary. While this provides some financial security for the former spouse, it may... Read more.
• The Reciprocal Trust Doctrine Can Trap the Unwary
  Estate planning attorneys utilize a number of different estate planning techniques to accomplish the goals of their clients and sometimes to minimize transfer taxes. One common estate planning technique is the transfer of assets into an... Read more.
• Denying a Death Claim on a Valid Life Insurance Policy
  The beneficiary of a life insurance policy is the person entitled to receive the death benefit of the policy when the insured person dies. In order to collect on a death benefit claim, the beneficiary must usually comply with specific... Read more.

• 3 Estate Planning Documents Every Parent Needs
• The importance of estate planning
• Priscilla Presley and Riley Keough to Settle Dispute Over Family Trust
• 8 estate planning tips for advisors with artists and entertainer clients
• Fiduciary Duty Breached by Nephew Who Withdrew Funds That Belonged to Family Trust

Giving to Charity

It is possible to set up a trust for charitable purposes. Charitable trusts are quite common, but certain requirements must be met.

Purpose of a Charitable Gift

Reasons for charitable gifts funded through a trust include the desire to:

• Help relieve poverty
• Help the elderly
• Advance a religion
• Benefit educational establishments
• Aid with the construction or maintenance of public property (such as a park)
• Prevent animal cruelty

How Are Beneficiaries Designated?

In general, beneficiaries of charitable gifts must have a broader scope:

• Cannot be specifically named people
• Can be a class of persons
• May be institutions

In some cases, a charitable gift may be given to a non-charitable organization. However, there must be a charitable intent; otherwise the trust is invalid as a charitable trust.

Supervision & Regulation

In some states, the office of the Attorney General oversees charitable trust activity. The Attorney General’s duties in this regard include:

• Maintaining a register of charitable corporations, trustees, and trusts
• Investigating transactions relating to charitable trusts
• Enforcing charitable trusts
• Recovering property on behalf of a charitable trust

Cy Pres Doctrine

If your charitable wishes cannot be fulfilled for some reason, the appropriate court will attempt to carry out your wishes by giving the property to an organization with a related charitable purpose. For example, a charitable trust set up to eradicate polio may instead be given to aid a pediatric foundation.

© 2023 NextClient.com, Inc. All rights reserved.