Tuesday, May 6, 2025

 Charitable Giving From Your Trust

I was just reading an article yesterday that was very pertinent to a transaction that I became familiar with recently.  I work alot with Sucessor Trustees who have to dispose of a property after the owner has passed away.  Often times besides the owners bequeathing items to their heirs,  they want to leave a portion of their estate to a charity.   Unknowningly they may name a large organization without specifically stipulating what "area" of that charity they want a portion of their estate to go to.  For example,  they may say United Way....or maybe the American Cancer Society.....it could be any  number of large non-profits. Without specifically stating that they want it to go maybe  to "research"....or a cancer hospital or perhaps to care for those with a specific kind of cancer,   their money may not go to where they assumed it would. 

Sometimes a homeowner may just say they want their house donated directly to a non-profit.  The issue though, is that most charities don't want the property itself,  but rather the monies that come from the sale of that home.  I've learned that many charities have a company that handles the sale itself, they then turn the funds over to the charity or non-profit.  

My point today is,  IF you're considering leaving a portion of your estate to a charity, definitely speak to your attorney or whoever is preparing your Trust to make certain that your wishes are clear and that the Trust states exactly how you want that bequeath to be distributed.