[WSBAPT] Charity Distributions

[betsy at bwattorney.com]

Hi all,

 

I have a situation that seems unusual to me, but that perhaps some of you
have encountered before.  Client was named PR in the Will and beneficiary on
the Schwab IRA account.  Client also received the residue of the estate.
The Will specifically called out the Schwab IRA account to be divided
amongst 8 different charities.  The 8 different charities were also the
alternate beneficiary on the Schwab IRA beneficiary designation forms. 

 

Decedent orally informed Client that it was important to him that the Schwab
IRA go to the charities, and she wants to honor that wish.  Schwab had her
decline her beneficiary designation so that the 8 charities alternate
beneficiary designation would control.  That was in December of 2019.  Ever
since then, client has worked constantly to try and get Schwab to disperse
the money to the charities.  She succeeded with 5 of the charities, but has
spent almost a year now, with no luck so far, trying to get the remaining
money to the last 3 charities.  The three charities are Planned Parenthood,
North City Helpline and The Nature Conservancy.  Schwab has closed the file
on her at least three times without dispersing; she has had to call and
escalate the call to finally get someone to recognize that they have not yet
dispersed and to reopen the file.  There is excessive finger pointing-
Schwab claims the charities have not filled out the paperwork, the charities
say they haven't received it, then everyone stops trying.  This is very
frustrating for client because she wants to be at peace with knowing that
Decedent's money got to the charities and it is enough money ($125,000 left
to be divided in thirds) that she doesn't want to just give up.  She wants
to either reclaim the money as her own (I don't think she can do this but
maybe someone knows of a rule where a gift is abandoned if not claimed
within a certain time frame?), Schwab tells her she cannot do this, or she
wants to accomplish the distributions.  She has been calling and writing a
letter campaign to these institutions for a year now.  Any thoughts or ideas
for her?  The Washington probate is already closed, but she could reopen it.

 

It seems that Schwab should be motivated to get the money out its door to
the beneficiaries and the charities should be motivated to receive their
money.  What am I missing?

 

Thanks,

 

Betsy

 

 



 

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<mailto:betsy at bwattorney.com> betsy at bwattorney.com | 206.705.3613 | 5608
17th Ave NW, Ste 1181, Seattle, 98107

 

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