Law Office of Tillena G. Clark, LLC

Directions7315 Wisconsin Ave., Suite 400W
Bethesda, Maryland 20814

Estate Planning Newsletter

Trusts & 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.

  • Responsibilities 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.
  • Inter Vivos Trusts
    Unlike a will or some other types of trusts, which take effect upon the death of their creator, a “living trust” or “inter vivos trust” comes into effect during its creator’s lifetime. The creator of a... Read more.
  • The QDOT and Non-Citizen Spouse
    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.
  • The Unexpected Consequences of Creating Your Own Estate Planning Document
    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.
Estate Planning News Links
Share This Page:
Designed and Powered by NextClient

© 2006 - 2023 Tillena G. Clark, LLC. All rights reserved.
Theme WebExpress™ attorney website design by NextClient.com.