[WSBAPT] Testamentary Charitable Foundation?

[David Faber]

Thank you for your responses.

Sarah: yes, the client has about $30mil in assets to leave for the purpose
of establishing a foundation. I suggested the DAF approach, using our local
Jefferson Community Foundation, but they didn't like that idea/want the
foundation as a legacy organization.

James: I also suggested that approach, but they declined to do the work
during lifetime.

Brent: I couldn't agree more, but as I noted above, my clients don't want
the work.

Thank you all again!

Best,
David J. Faber
Faber Feinson PLLC
800 Polk Street, Suite B
Port Townsend, WA 98368
(360) 379-4110

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On Tue, Mar 24, 2026 at 5:30 PM Brent Williams-Ruth <
brent at williams-ruthlaw.com> wrote:

> I do not believe that it would be a problem - however, it make not be the
> best course of action for timelines.
>
> I have several clients who have established charitable foundations (while
> alive) and I can advise that it is not a speedy process.  Yes, the actual
> formation with the WA SOS is fast and YES you can get the tax authorization
> and EIN, but then it takes some time to get that confirmation and formal
> recognition as being a qualified charitable organization.
>
> What I don't know and would be interested is how the Washington DOR would
> treat this. Would the DOR accept a "foundation in formation" to avoid
> estate tax or would they put it all "pending" waiting to run the tax return
> until such time as the foundation has been confirmed as a qualified
> charitable organization.
>
> If it were me, I would simply work with the client to create it NOW. It
> doesn't need to be fully funded at this point but ensuring that the
> foundation is truly set up as they wish.....it is easier to do now than
> after their death.  Plus, it would be beneficial to get the entire team
> together (CPA, investing etc.) so that they know what will be forthcoming
> upon passing.
>
> My first charitable foundation was a decedent who owned extensive real
> estate holdings worth just under $100m. I am eternally grateful that this
> was established prior to death given how - even with a foundation in
> existence - the various family members still tried to wrangle for position
> and control of things.
>
> Best of luck!
>
> *Brent Williams-Ruth* (pronouns: he/him)
> *Attorney-At-Law*
>
> *Law Offices of Brent Williams-Ruth, **a division of BWR Consulting, PLLC*
>
> *Physical Address: 500 S 336th Street, Suite 214; Federal Way, WA 98003*
>
> *Mailing Address: **PO BOX 3319; Federal Way, WA 98063 *
>
> Office/Scheduling Phone: (253) 285-7751
>
> For All Meetings & Scheduling: info at williams-ruthlaw.com
>
> e-mail <Brent at Williams-RuthLaw.com> / website
> <http://www.williams-ruthlaw.com/> / facebook
> <http://www.facebook.com/bwrlaw> /
>
>
> On Tue, Mar 24, 2026 at 3:10 PM David Faber <david at faberfeinson.com>
> wrote:
>
>> A client wants to have a charitable foundation established by their
>> estate at their death, and to leave their entire estate to the charitable
>> foundation. I can't see any reason why this would be a problem, but this is
>> a case of first impression for me, so I don't know what I don't know. Would
>> there be any issue with a testamentary charitable foundation, so long as
>> the Will lays out the charitable purposes for which the foundation would be
>> established, directs the PR to file for a Washington State nonprofit
>> corporation and to seek 501(c)(3) not-for-profit status, and leaves their
>> estate to the charitable foundation? Would the gift to a not-yet-existent
>> charitable entity be estate tax exempt?
>>
>> Thank you.
>>
>> Best,
>> David J. Faber
>> Faber Feinson PLLC
>> 800 Polk Street, Suite B
>> Port Townsend, WA 98368
>> (360) 379-4110
>>
>> *** NOTICE: ATTORNEY CLIENT COMMUNICATION - PRIVILEGED & CONFIDENTIAL.
>> This communication may contain privileged or other confidential
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