[WSBAPT] nonprofit org as trustee?

[Diane J. Kiepe]

A donor advised fund to carry on after death with selected charities with your local foundation is likely the best way to go.  They segregate the account and make distributions in accordance with the estate plan.  I have had good luck with Innovia Foundation here in Spokane.  They server the PNW, not just Spokane.  In the alternative they could consider a private foundation but as pointed out by Philip, you don't want to select just any person to serve - could be ugly if foundation status is loss.  Really the fees for those in this business, in my opinion, is worth it - they know the rules and they'll be more proficient in what they are doing.

Diane J. Kiepe

Diane J. Kiepe
Douglas Eden
717 W. Sprague Ave.
Suite 1500
Spokane, WA  99201
djkiepe at depdslaw.com<mailto:djkiepe at depdslaw.com>
509-455-5300

From: wsbapt-bounces at lists.wsbarppt.com <wsbapt-bounces at lists.wsbarppt.com> On Behalf Of Philip N. Jones
Sent: Thursday, July 28, 2022 2:25 PM
To: WSBA Probate & Trust Listserv <wsbapt at lists.wsbarppt.com>
Subject: Re: [WSBAPT] nonprofit org as trustee?

Some community foundations (or other nonprofits) will not want to serve as a trustee of a trust, because that role triggers all kinds of reporting/regulation/etc.  Instead, they would want to hold the assets in a fund that is part of their overall foundation.  By doing so, their reporting requirements are few, or at least are not much more than what they have been doing for years.
The other way of saying this is to suggest that you get a firm (in writing) commitment from your proposed trustee that they will take on this responsibility of serving as a trustee.
At a minimum, nominate a backup if they decline.
Phil Jones
Portland, OR


Philip N. Jones
Duffy Kekel LLP
900 S.W. Fifth Ave. Suite 2500
Portland, OR 97204
pjones at duffykekel.com<mailto:pjones at duffykekel.com>
(503) 226-1371 - office
(503) 853-1482 - cell
(503) 226-3574 - fax

From: wsbapt-bounces at lists.wsbarppt.com<mailto:wsbapt-bounces at lists.wsbarppt.com> <wsbapt-bounces at lists.wsbarppt.com<mailto:wsbapt-bounces at lists.wsbarppt.com>> On Behalf Of Kerry Richards
Sent: Tuesday, July 26, 2022 5:03 PM
To: WSBA Probate & Trust Listserv <wsbapt at lists.wsbarppt.com<mailto:wsbapt at lists.wsbarppt.com>>
Subject: Re: [WSBAPT] nonprofit org as trustee?

Sharon:
Have your clients look into the Seattle Foundation.
Kerry A. Richards

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Subject: [WSBAPT] nonprofit org as trustee?


Hi, friends -



Clients, a married couple, want to create a testamentary trust to receive assets when the second of them dies. The trust would hold assets intended for charitable purposes. They want to name a not-for-profit organization to serve as trustee, rather than a professional fiduciary (such as one of the Washington trust banks), to avoid having to pay trustee fees. Instead, they want the organization to receive a small portion of the trust assets each year as a donation in return for serving as trustee.



Has anyone seen this done before, and are there issues we should be aware of? I'm trying to figure out if this is a terrific idea or if it will create more pitfalls than it avoids. For example, the organization they are considering is located in Washington, D.C.   The trustee would be in charge of a trust subject to Washington law, but would not be a Washington entity. Does that create a problem?



Thanks for any guidance you can provide.



Sharon



Sharon C. Rutberg, Attorney at Law

Salmon Bay Law Group, PLLC

1734 NW Market St.

Seattle, WA 98107

206-735-3177, ext. 2

sharon at salmonbaylaw.com<mailto:sharon at salmonbaylaw.com>

Website: www.salmonbaylaw.com<https://nam11.safelinks.protection.outlook.com/?url=http%3A%2F%2Fwww.salmonbaylaw.com%2F&data=05%7C01%7Cpjones%40duffykekel.com%7Cbc41a2207315436a804108da6f653b39%7C2d66ed5354fa4c2f8c4dbff1aca5479d%7C0%7C0%7C637944777824560100%7CUnknown%7CTWFpbGZsb3d8eyJWIjoiMC4wLjAwMDAiLCJQIjoiV2luMzIiLCJBTiI6Ik1haWwiLCJXVCI6Mn0%3D%7C2000%7C%7C%7C&sdata=tDj1nolXoE0WDuh9Z6d%2B%2FKXKZ%2FTCiNv5e3uSYug%2F4qQ%3D&reserved=0>

Washington State Bar #47055

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