[WSBAPT] trust admin question

[Sharon Rutberg]

In this case, the named charitable organization is gone, but there is
another organization to which donation could be made to further the
charitable purpose of the testator/trustor. If the donation is made, certain
noncharitable beneficiaries will receive a smaller amount when the trust is
terminated than they would if the charitable share were divided among them. 

There is a relatively new statute (2011) -- RCW 11.96A.127 -- that says
charitable dispositions by trust or will that have become impracticable do
not fail or revert to the other beneficiaries. Under this section, a court
may order that the property be distributed in a manner consistent with the
testator's or trustor's charitable purposes.  (This is consistent to some
extent with the common law doctrines of "cy pres" and "equitable diversion,"
which are related but not identical.)

Has anyone had any experience with this new statute? I'm wondering if a
trustee could rely on it to make a distribution of assets to further a
charitable purpose without first petitioning the court or seeking agreement
of other noncharitable beneficiaries.  

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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-----Original Message-----
From: wsbapt-bounces at lists.wsbarppt.com
[mailto:wsbapt-bounces at lists.wsbarppt.com] On Behalf Of Melinda Grout
Sent: Friday, March 13, 2015 3:52 PM
To: wsbapt at lists.wsbarppt.com
Subject: Re: [WSBAPT] trust admin question

Along these lines, what if the organization still exists, but wants to
disclaim, and Will does not address alternate beneficiary to the
organization?  In this hypothetical situation, the organization would be
treated by statute as if predeceased, so in that case, would the bequest go
to the other beneficiaries named in the Will, in proportion to each one's
percentage interest under the Will, or in equal shares?  Remaining
beneficiaries would not be willing to agree on the matter, so TEDRA/NJA
option not realistic.  

Melinda Grout

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