(13) Enforcement of Charitable Trusts

traditional rule on Enforcement of Charitable Trusts

responsibility of the state attorney general or a public official; Co-trustees; individuals with a special interest can sue for compliance, but the settlor and beneficiaries lack standing to challenge the trust's operation.

modern rule on Enforcement of Charitable Trusts

same ppl in traditional rule can enforce, AND settlor can enforce too! if settlor dies, executor of the settlor’s estate still has a right on behalf of settlor to enforce charitable trust

Issues with enforcement of charitable trusts

attorneys general don’t typically dedicate a lot of resources to monitoring and enforcing charitable trusts. State attorney generals typically only get involved when controversies or disputes arise; also public officials can politicize it

person with special interest

someone who was entitled to receive a benefit under the trust that was not available to the general public.

Federal Supervision for charitable trusts

IRS and Johnson Amendment (prevents nonprofits & charitable trusts from engaging in partisan political activity)

Johnson Amendment

under fed supervision for CTs. prohibits nonprofit entities and charitable trusts from engaging in partisan political activity. The goal is to ensure that nonprofit and charitable trusts use their assets for intended beneficiaries and not to support political candidates and causes