William G. Schwab and Associates
811 Blakeslee Blvd. Dr. East (PA Route 443) PO Box 56 Lehighton, PA 18235
Tel 610-377-5200 Fax 610-377-5209
NEWSLETTER
Estate Planning/Probate May 25, 2016
 
Personal Injury
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Elder Law
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Denying a Death Claim on a Valid Life Insurance Policy

The beneficiary of a life insurance policy is the person entitled to receive the death benefit of the policy when ...(more)

 

Tax Treatment of Long-Term Care Insurance Premiums and Benefits

People are living longer, but for many a reality of aging is that at some point they are unable to ...(more)

 

What are the Duties of a Trustee?

Every trust must have a trustee to properly administer the elements of the trust. Trustees can be individuals, financial institutions ...(more)

 

Reverse Mortgages for Enhancing Retirement

Many are familiar with the concept of a mortgage, where an individual makes monthly payments to a lender. However, for ...(more)

 

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Trusts & Charity


It is possible to set up a trust for charitable purposes. Charitable trusts are quite common, but certain requirements must be met.

Purpose of a Charitable Gift
Reasons for charitable gifts funded hrough a trust include the desire to:

  • Help relieve poverty
  • Help the elderly
  • Advance a religion
  • Benefit educational establishments
  • Aid with the construction or maintenance of public property (such as a park)
  • Prevent animal cruelty

How Are Beneficiaries Designated?
In general, beneficiaries of charitable gifts must have a broader scope:

  • Cannot be specifically named people
  • Can be a class of persons
  • May be institutions

In some cases, a charitable gift may be given to a non-charitable organization. However, there must be a charitable intent; otherwise the trust is invalid as a charitable trust.

Supervision & Regulation
In some states, the office of the Attorney General oversees charitable trust activity. The Attorney General's duties in this regard include:

  • Maintaining a register of charitable corporations, trustees, and trusts
  • Investigating transactions relating to charitable trusts
  • Enforcing charitable trusts
  • Recovering property on behalf of a charitable trust

Cy Pres Doctrine
If your charitable wishes cannot be fulfilled for some reason, the appropriate court will attempt to carry out your wishes by giving the property to an organization with a related charitable purpose. For example, a charitable trust set up to eradicate polio may instead be given to aid a pediatric foundation.

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