[WSBAPT] Donating Estate Property

[Lovie Bernardi]

Dear Listmates:

 

Is it prudent for the PR and successor trustee donate the estate’s train
collection without prior approval of the remainder beneficiaries? Here are
the facts: A train appraiser (whose name someone on Listserv shared with
me) appraised the collection’s fair market value at $8,000. He estimates
he could probably sell the collection for $4,000 and after the commission,
the Estate (and ultimately the Trust) would end up with about $3,000. It
could take months for the collection to sell. The other option the train
appraiser proposed would be to donate the proceeds of the sales to
charity, allowing the Estate to use the $8,000 as a charitable deduction.
The trust will ultimately end up with about $3.5 million in assets to
distribute to seven individual beneficiaries, all receiving 3 to 5 % of
the remainder with three charities taking one-third each of what is left
after the individual beneficiaries receive their shares. The complicating
factor to get approval is five of the individual beneficiaries are French
citizens and we would need to translate the correspondence to them. It
seems to me that it is wasteful to spend the estate’s time to get
preapproval from the beneficiaries to donate the trains, given the small
amount each would receive if the trains were sold. However, I recognize
there is some risk to my client, the PR and successor trustee, if someone
ultimately has a problem with the donation. Any advice?

 

Lovie Bernardi

Attorney at Law

Seligmann & Flaherty, PLLC

216 First AVE S, #450

Seattle, WA  98104

(206) 682-2616

 

 <mailto:joni at sbfirm.com> lovie at sbfirm.com

 <http://sbfirm.com/> http://sbfirm.com

 

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