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Please call our Director of Client Relations, Pattie Brown, at 1-800-500-2525 ext. 117 or email Pattie at pbrown@trustlaw.com if you need any further assistance.

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What is “Donor Intent” & How Does It Affect a NY Estate Plan

Charity is an important part of an estate plan for New York families. Many residents have important causes that symbolize their own values and morals, including social, political, economic and religious non-profit groups. Donating funds via a will or trust is common for estates of all sizes–this is not just for the wealthy. Even relatively small donations can have a significant impact. In addition, giving funds to valued causes is a key way to pass on a final lesson to future generations.

There are many different ways to give assets to a charity at death. In the simplest form, funds can be given for the charity to use in any way it chooses. However, many donors have more specific wishes, often wanting to direct funds for very specific uses.

Understanding Donor Intent
“Donor intent” is the term used when delineating exactly what was intended by the giver of a gift to a charity. Unfortunately, disagreement often breaks out regarding whether the funds were actually used by the charity in the manner the donor intended. These disputes can arise for many different reasons:

***What if the charity is no longer doing the specific work delineated by the donor?

***What if the organization is in desperate need of operating funds to continue general business, even though the donor specifically wanted to funds to go to sub-set program?

***What if the donated funds are not large enough to actually accomplish the intended purpose? Or if there are extra funds remaining after the purpose is met?

Another layer of complexity is that the actual donor intent itself may not be clear. When written generally (and without proper legal help) there may be many interpretations. After a passing, the donor is not around to clarify his or her wishes and so the stage is often set for contentious disagreement between surviving family members, advisors, the charity, and other interested parties.

Casebooks are filled with drawn-out legal battles related to these issues. Ideally, planning itself should be done to limit ambiguity and prevent conflict before it arises. A legal professional can help by clarifying the specific goals of the donor and ensuring that only an appropriate level of flexibility is included in legal documents. In addition, there are various ways to actually structure a gift–it can be more than just cutting a check–and a lawyer can explain what option makes the most sense in your case.

Experienced Legal Guidance
The complexity of this issue is one reason why it is critical to have the help of an experienced estate planning attorney when crafting these arrangements. Even details that seem straightforward at first–like donating money to charity–can come with unique challenges. It is always prudent to take the time to draft inheritance documents carefully to avoid future disagreements and feuds.

For help on these and similar matters throughout New York, please contact the legal professionals at our firm today.

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