Taking the time to update the charitable bequests in your trust or Will can seem tedious when compared to the constant, busy buzz of everyday life; however, the consequences of not making necessary changes can be severe.
It is likely A.B. Branan did not foresee that the charitable bequest provisions would remain unresolved for years following his death. When Mr. Branan signed his Will in 1992, he left a charitable bequest to the Cordele Georgia Area Y.M.C.A. After experiencing financial problems, the Cordele Y.M.C.A. had its authority to operate programs revoked by the National Council of Y.M.C.A. and its authority was never reinstated. Although the Cordele Y.M.C.A. still existed as a legal entity, it only performed the function of liquidating its assets and paying its debts. When the operating power of the Cordele Y.M.C.A was revoked, the Albany Y.M.C.A. took over all activities in that county. In 1994, Mr. Branan instructed his attorney to draft a codicil to change the charitable bequest in his Will from “Cordele Y.M.C.A.” to “Albany Y.M.C.A.” Although Mr. Branan had the opportunity to execute these codicils, he never did so prior to his death in 1995. His failure to update the charitable bequests in his Will resulted in a five year battle in the courts with both the Cordele Y.M.C.A. and the Albany Y.M.C.A. claiming entitlement to the bequest.
When a donor demonstrates a general charitable intent and dictates how this intent should be carried out, but because of a change in circumstances the intent is no longer practical, the court can invoke the doctrine of “cy pres” to analyze the situation and create a plan for achieving the donor’s intent. The term cy pres is derived from the French phrase “as near as possible.”
In Mr. Branan’s case, the court found that although the Cordele Y.M.C.A. discontinued its active functions after the Will was created, it was still an existing organization with an identity, and its ability to take the gift was not impaired by its inactive status. If Mr. Branan had wanted the Albany Y.M.C.A. instead of the Cordele Y.M.C.A., the court held he should have changed his Will prior to his death.
To save yourself the hassle and stress of going through the cy pres process, review your charitable beneficiaries periodically to ensure they reflect your current wishes. The charity could have changed names or purposes, as in Mr. Branan’s case. Also, your wishes might have changed. For example, an illness of a close relative may motivate you to leave some money to help those afflicted with that disease. The McGee Law Firm can help make sure that your wishes are implemented and can even help you keep your plan updated through periodic review meetings.
Compliments of the McGee Law Firm, Attorney Brandon McGee
Written By: The American Academy of Estate Planning Attorneys
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