Estate Planning Newsletter

• Obligations of a Guardian
  In certain cases, a minor may need to be assigned a legal guardian either because a parent is not able to care for the minor, or because the existing guardian is not competent. When a guardian is appointed, he/she will have the same... Read more.
• The Passing of Assets to Named Beneficiaries from a Totten Trust
  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.
• Marital Deductions & Non-Citizen Spouses
  A QDOT is a specific type of marital deduction trust that is designed to ensure that non-citizen spouses will eventually pay any taxes that may be due upon distribution of the principal from the trust, even if the surviving spouse... Read more.
• Estate Tax Rates in 2013
  Much to the relief of many, the American Taxpayer Relief Act of 2012 (“2012 Tax Act”) was enacted in the beginning of 2013, making permanent many of the tax benefits that were scheduled to expire at the end of 2012. The... Read more.

• Recent Tax Court Case Has Important Lessons On How To Do Estate Planning Right!
• Ending a marriage? Don’t get divorced from financial reality in the process
• Why The Biden Administration Is Motivating Wealthy Families To Address Their Estate Plans
• With Change Looming, Fine Tune Your Year-End Planning Strategies
• Why is Estate Planning More Important Now Than Ever Before?

Offering Your Estate to a 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.

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