[WSBAPT] trust admin question

[Sharon Rutberg]

Hello, Listmates -

 

I am advising a client about a trust administration matter. As trustee, he
is winding up a testamentary trust that was established to pay educational
expenses for three young adults. The testator directed that when the trust
terminated, funds remaining in the trust should be distributed in fourths -
one to a charitable organization and one each to the young adults.  

 

The named charitable organization no longer exists. We have identified an
alternative organization to give the proceeds in order to carry out the
testator's charitable purpose, an approach that my research shows courts
often uphold using the doctrine of "equitable deviation."  In addition, it
appears RCW 11.96A.127 may permit such an action. 

 

My questions are these:  Having obtained a legal opinion that distribution
to the alternative organization is appropriate, does the trustee have the
discretion to make the distribution without first seeking permission from
the appropriate court or following TEDRA procedures (e.g., seek agreement
from interested parties, mediation, etc)? Would it be risky for him to do
so? Does it depend on whether he anticipates a challenge from the other
distributees?  

 

With appreciation, 

Sharon Rutberg

 

Sharon C. Rutberg

Attorney at Law

1718 NW 56th Street, Suite 304

Seattle, WA 98107

Website: www.sharonrutberglaw.com 

206-409-2604

email at sharonrutberglaw.com

Washington State Bar #47055
D.C. Bar #420576

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