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.

© 2024 NextClient.com, Inc. All rights reserved.

• Wills that Must be Witnessed
  A witnessed will is only one of several different types of wills. It is also referred to as a “formal” or “attested” will, and involves the eyewitness participation of other... Read more.
• An Irrevocable Funeral Trust is a Valuable Medicaid Spend-Down Expense
  If you are concerned that the cost of skilled nursing care or other long-term care will exhaust your savings and saddle your heirs with your funeral and burial expenses, then you may want to consider adding an Irrevocable Funeral Trust... Read more.
• Reverse Mortgages as a Way to Enhance Retirement Living
  Many are familiar with the concept of a mortgage, where an individual makes monthly payments to a lender. However, for those who qualify, there is another type of mortgage called a “reverse mortgage” (RM), where the lender... Read more.
• Replacing an Estate Executor or Administrator
  State laws and procedures typically govern the administration of an estate. For this reason, the law varies among jurisdictions. However, in 1969, a “Uniform Probate Code” (Uniform Code) was introduced. Since that time,... Read more.

• Travis Scott to Face Jury Trial Over Astroworld Disaster After Judge Denies Dismissal
• Harvey Weinstein's Rape Conviction Overturned by NY Appeals Court
• FTC Final Rule Bans Noncompete Agreements to Boost Competition and Worker Freedom
• U.S. Supreme Court Deliberates Over Idaho's Abortion Ban and Federal Emergency Care Law
• Justice Department Reaches $138.7M Settlement with Victims of Larry Nassar