Is there any way for me to legally sell or leverage a $25,000 charitable fund that I solely funded?
Get Legal Help Today
Compare Quotes From Top Companies and Save
Secured with SHA-256 Encryption
Is there any way for me to legally sell or leverage a $25,000 charitable fund that I solely funded?
I established a charitable fund in 2002 in honor of my late father and funded it with $25,000 of my own money. I never distributed the funds as I was undecided as to how to best honor my Dad. In 2005, I was diagnosed with late-stage cancer which I have survived (5 years!), but at a cost of $400,000 out-of-pocket. In the past year my employer went out of business and a new job I then lined up was eliminated due to the state of the economy. The point being that I’m in desperate need of cash to cover my living and medical expenses until I can find new employment.
Asked on November 1, 2010 under Business Law, South Carolina
Answers:
M.T.G., Member, New York Bar / FreeAdvice Contributing Attorney
Answered 14 years ago | Contributor
I am sorry for your situation but congratulations on your recovery. It is my understanding that a charitable trust is an irrevocable trust set up for the benefit of society, and could be on behalf of someone like you did for your Dad. The key word here is irrevocable, whichmeans that you would relinquish the ability to dissolve the trust should you wish to do so. This factor means that it is not your property so then it would follow that it is not yours to sell or leverage. But is there a remainder interest in the trust? The fact that you have not named a charity to which the fund is designated may or may not be a consideration here and I would check that out with an accountant who best understands how the IRS views these matters. Good luck to you.
IMPORTANT NOTICE: The Answer(s) provided above are for general information only. The attorney providing the answer was not serving as the attorney for the person submitting the question or in any attorney-client relationship with such person. Laws may vary from state to state, and sometimes change. Tiny variations in the facts, or a fact not set forth in a question, often can change a legal outcome or an attorney's conclusion. Although AttorneyPages.com has verified the attorney was admitted to practice law in at least one jurisdiction, he or she may not be authorized to practice law in the jurisdiction referred to in the question, nor is he or she necessarily experienced in the area of the law involved. Unlike the information in the Answer(s) above, upon which you should NOT rely, for personal advice you can rely upon we suggest you retain an attorney to represent you.