[WSBAPT] PR discretion to assess quality of charitable beneficiaries

[Philip N. Jones]

I don't see a problem with your approach, but I have a few comments:

  1.  Don't tie it to a particular rating or other factor.  Give the PR broad sole discretion.  That will help prevent a disgruntled charity from bringing suit to force a distribution.
  2.  As for the estate tax charitable deduction, I believe that the federal tax law is that you can still get the charitable deduction if you give the PR the discretion to select the charities, but do not give the PR the discretion to select the total amount passing to charity.  I believe that Reg. §20.2055-2(b)(1) says this, in a roundabout way.
Phil Jones

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

From: wsbapt-bounces at lists.wsbarppt.com <wsbapt-bounces at lists.wsbarppt.com> On Behalf Of Sharon Rutberg
Sent: Thursday, June 13, 2024 2:16 PM
To: wsbapt at lists.wsbarppt.com
Subject: [WSBAPT] PR discretion to assess quality of charitable beneficiaries

Hello, listmates -

A client has asked if she can include in her will a requirement that the PR withhold a distribution to a named charitable beneficiary that has fallen below a certain quality, tested in some way such as a low score on Charity Navigator.  Has any of you successfully given the PR discretion to refuse a charitable distribution on a basis such as this?

I told client that doing so could cause trouble come probate time, and that it might be better if she checks her named charities every few years and makes changes on her own as she sees fit. However, I also agreed to see if someone out there has another solution.

Many thanks,
Sharon

Sharon Rutberg, Attorney at Law
Salmon Bay Law Group, PLLC
1734 NW Market St.
Seattle, WA 98107
206-735-3177, ext. 1
sharon at salmonbaylaw.com<mailto:sharon at salmonbaylaw.com>
Website: www.salmonbaylaw.com<http://www.salmonbaylaw.com/>
Washington State Bar #47055

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