[WSBAPT]Trust or 503(c)

[amanda_wilson at olypenlawoffices.com]

Hello,

 

I have a potential client who called with a question that I have not come
across before.


She wants to "set up a Trust Fund" to put donations she gets on behalf of
her grandson who has leukemia. My initial thought was that people should
be able to make donations that are tax free, so it should be a non-profit
business. But then I realized it would need to have a board and articles
and yearly meetings, which is clearly not what she intends to do. She
wants to be able to set up an account, put money in it that is earmarked
for her grandson, and then spend it on medical bills or other things he
needs for his care. That sounds like a Trust to me, but has anyone ever
done this before? Is there a reason that it has to be a non-profit, as
long as no one is holding it out as a non-profit and its not tax free
donations? I may be over-thinking this, hazard of the profession....

 

Amanda

 

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