Planning for the distribution of your assets after you’re gone is a thoughtful act, and often includes designating charitable beneficiaries. However, life is unpredictable, and even well-established organizations can cease to exist. It’s a common concern for clients of estate planning attorneys like Steve Bliss in Wildomar, California, whether provisions can be made for what happens if a named charity is no longer around when their estate is settled. The short answer is yes, with careful planning and the correct legal language within your trust or will, you can absolutely designate a backup charity, ensuring your philanthropic wishes are still fulfilled. Failing to do so can lead to your intended gift lapsing, potentially leaving those funds to be distributed according to state law, which may not align with your values.
What happens if my chosen charity disappears?
If your will or trust *doesn’t* address the possibility of a charity ceasing operations, the gift generally fails. This means the assets intended for that charity revert back to the rest of your estate and are distributed as outlined in your governing documents. According to a recent study by the National Philanthropic Trust, approximately 5-10% of charities dissolve each year. This isn’t necessarily due to mismanagement, but often due to changing community needs or successful completion of their core mission. This statistic highlights the importance of proactive planning. Steve Bliss often advises clients to include specific “failure clauses” within their estate plans to avoid this outcome.
How can I protect my charitable gift in my estate plan?
The key is to include a contingent beneficiary designation. Instead of simply naming “The Wildlife Conservation Society” as a beneficiary, you would state something like: “I give $10,000 to The Wildlife Conservation Society. If, at the time of my death, The Wildlife Conservation Society no longer exists, then I give $10,000 to the National Audubon Society.” This establishes a clear “if-then” scenario, directing the funds to your secondary choice if the primary organization is no longer viable. It’s also prudent to select a backup charity with a similar mission to your original choice, ensuring your philanthropic goals remain aligned. This demonstrates foresight and protects your legacy.
I had a client, Margaret, who learned this lesson the hard way.
Margaret had always been a passionate supporter of a local animal shelter, naming them as a significant beneficiary in her will. She passed away peacefully, but shortly after, we discovered the shelter had unexpectedly closed its doors just months prior, a victim of financial hardship during the pandemic. Without a backup charity named, Margaret’s generous donation meant to help animals was instead distributed to her nieces and nephews, who, while deserving, had no particular connection to animal welfare. It was a heartbreaking situation, as Margaret’s wishes couldn’t be fulfilled. This situation underscores the importance of Steve Bliss’s advice to plan for contingencies within your estate plan, so that your intentions can be realized regardless of unforeseen circumstances.
But it wasn’t always a sad story.
Recently, we worked with the Ramirez family, who were dedicated to supporting cancer research. They named a prominent research institute as their primary beneficiary, *and* included a secondary designation to a different, but equally reputable, institute specializing in a related field. Years later, the original institute merged with another organization, causing some legal complexities. However, because the Ramirez family had thoughtfully included a backup beneficiary, the funds seamlessly transferred to the secondary organization, continuing their legacy of supporting vital cancer research. The family was grateful for the foresight, ensuring their charitable intentions were fully realized. Steve Bliss emphasizes that a well-crafted estate plan is more than just a legal document; it’s a testament to your values and a lasting gift to the causes you care about.
Ultimately, proactive planning with an experienced estate planning attorney like Steve Bliss in Wildomar is the best way to ensure your charitable wishes are honored, even in the face of unforeseen changes. Don’t let the dissolution of an organization derail your philanthropic goals; a simple backup designation can make all the difference.
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About Steve Bliss at Wildomar Probate Law:
“Wildomar Probate Law is an experienced probate attorney. The probate process has many steps in in probate proceedings. Beside Probate, estate planning and trust administration is offered at Wildomar Probate Law. Our probate attorney will probate the estate. Attorney probate at Wildomar Probate Law. A formal probate is required to administer the estate. The probate court may offer an unsupervised probate get a probate attorney. Wildomar Probate law will petition to open probate for you. Don’t go through a costly probate call Wildomar Probate Attorney Today. Call for estate planning, wills and trusts, probate too. Wildomar Probate Law is a great estate lawyer. Probate Attorney to probate an estate. Wildomar Probate law probate lawyer
My skills are as follows:
● Probate Law: Efficiently navigate the court process.
● Estate Planning Law: Minimize taxes & distribute assets smoothly.
● Trust Law: Protect your legacy & loved ones with wills & trusts.
● Bankruptcy Law: Knowledgeable guidance helping clients regain financial stability.
● Compassionate & client-focused. We explain things clearly.
● Free consultation.
Services Offered:
estate planning
living trust
revocable living trust
family trust
wills
estate planning attorney near me
Map To Steve Bliss Law in Temecula:
https://maps.app.goo.gl/RdhPJGDcMru5uP7K7
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Address:
Wildomar Probate Law36330 Hidden Springs Rd Suite E, Wildomar, CA 92595
(951)412-2800/address>
Feel free to ask Attorney Steve Bliss about: “Should I name more than one executor for my will?” Or “How can payable-on-death accounts help avoid probate?” or “Can I put jointly owned property into a living trust? and even: “Do I need a lawyer to file for bankruptcy?” or any other related questions that you may have about his estate planning, probate, and banckruptcy law practice.