[WSBAPT] trust admin question

[Lewis, Amy C.]

Sharon,

                I recommend using a nonjudicial binding agreement under RCW 11.96A.220 and having the AG's office approve on behalf of the charitable interest.  The contact person in the AG's office is Assistant Attorney General Sarah Shifley (SarahS5 at ATG.WA.GOV<mailto:SarahS5 at ATG.WA.GOV>).


Amy C. Lewis, Attorney

[cid:logo72aeb8]

ESTATE PLANNING & PROBATE

1200 Wells Fargo Plaza | 1201 Pacific Avenue | Tacoma, WA 98402
phone 253.572.4500 | fax 253.272.5732 | www.eisenhowerlaw.com<http://www.eisenhowerlaw.com/>

From: wsbapt-bounces at lists.wsbarppt.com [mailto:wsbapt-bounces at lists.wsbarppt.com] On Behalf Of Sharon Rutberg
Sent: Friday, March 13, 2015 10:54 AM
To: wsbapt at lists.wsbarppt.com
Subject: [WSBAPT] trust admin question

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<http://www.sharonrutberglaw.com>
206-409-2604
email at sharonrutberglaw.com<mailto:email at sharonrutberglaw.com>
Washington State Bar #47055
D.C. Bar #420576

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