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Troublesome Trust Topics
State Bar Of Texas Governance of Nonprofit Organizations Course
August 13-14, 2015 | Austin, Texas
Presented by: Darren B. Moore and David M. Rosenberg
Troublesome Trust Topics State Bar Of Texas Governance of Nonprofit - - PowerPoint PPT Presentation
Troublesome Trust Topics State Bar Of Texas Governance of Nonprofit - - PowerPoint PPT Presentation
Troublesome Trust Topics State Bar Of Texas Governance of Nonprofit Organizations Course August 13-14, 2015 | Austin, Texas Presented by: Darren B. Moore and David M. Rosenberg a charitable trust? What is Is a Nonprofit Corporation Effectively
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Is a Nonprofit Corporation Effectively a Charitable Trust?
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Is a Nonprofit Corporation Effectively a Charitable Trust?
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Equitable Deviation Equitable Deviation
How is a charitable trust modified?
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Getting the modification party started… Getting the modification party started…
Trustees, Beneficiaries, and the OAG
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Determining Jurisdiction:
Property Code vs. Probate Code
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terminate a charitable trust or distribute its assets to
- ther than charitable donees | depart from the objects of
the charitable trust stated in the instrument creating the trust, including a proceeding in which the doctrine of cy
pres is invoked | construe, nullify, or impair the
provisions of the testamentary or other instrument creating or affecting a charitable trust | contest or set
aside the probate of an alleged will under which money,
property, or another thing of value is given for charitable purposes | allow a charitable trust to contest
- r set aside the probate of an alleged will | determine
matters relating to the probate and administration of an
estate involving a charitable trust | obtain a declaratory
judgment involving a charitable trust
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Judicial Modification Standards
163.007
- Impracticable
- Unlawful (use of fund
- nly)
- Impossible to achieve
(use of fund only)
- Circumstances not
anticipated by donor; will further purposes of fund (management/investment
- nly)
- Wasteful
- Impairs management or
investment of fund (management/investment
- nly)
112.054
- Fulfilled
- Illegal
- Impossible to fulfill
- Circumstances not known/anticipated by settlor
- Necessary/appropriate to prevent waste/avoid
impairment of trust’s administration (only as to administrative/non-dispositive terms)
- Necessary/appropriate to achieve settlor’s tax
- bjectives; not contrary to settlor’s intentions
- Not inconsistent with material purposes of trust
(consent/deemed consent of beneficiaries)
- Terminate trust where continuance of trust not
necessary to achieve any material purpose of trust (consent/deemed consent of beneficiaries)
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When is modification (really)
(really) justified?
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Charitable Trust Nonprofit Corporation
When, Why, and How to Convert
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