Estate Planning Newsletter

• Duties of a Trustee
  Every trust must have a trustee to properly administer the elements of the trust. Trustees can be individuals, financial institutions or even organizations. A trustee follows the precise instructions of the trustor (or the... Read more.
• Resulting Trusts
  There may be instances where property under a trust is transferred to the wrong beneficiary. This transfer can be corrected through a remedy called a resulting trust or an implied trust. Do not confuse a resulting trust, which is... Read more.
• The Judicial Doctrine of Equitable Adoption
  In general terms, the judicial doctrine of “equitable adoption” recognizes a valid parent-child relationship in the absence of a formal adoption procedure, holding a person who has acted like a child’s parent for a... Read more.
• Valuation of Securities for Estate Tax Purposes
  In 2001, Congress passed legislation incrementally increasing the amount exempt from federal estate taxes and completely eliminating estate taxes in the year 2010. However, the legislation contains a “sunset” provision... Read more.

• It’s time to create an estate plan to take advantage of the big tax exemption
• How to set up an estate plan to eliminate paying taxes on an inherited home
• Aretha Franklin’s estate remains at heart of family dispute
• How Do Investments In Opportunity Zones Fit Into Estate Planning?
• If Your Estate Plan Includes IRAs, a New Law Means It Is Time to Reevaluate

Charitable Trusts

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.

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