Legal

Ask a lawyer and get answers to your legal questions

Ask a Lawyer,
Get an Answer ASAP!

I have a 501c3 tax exempt corp. I am in the process of writing…

Customer Question
I have a 501c3 tax...
I have a 501c3 tax exempt corp. I am in the process of writing a will. I would like to have any funds that are in my non-profit corp. available to my children if the non-profit is still in existance when I die. Can I will those funds to them or should I make them part of the Board of Directors with power to allicate funds if I should die?
Submitted: 8 years ago.Category: Legal
Show More
Show Less
Ask Your Own Legal Question
Answered in 8 minutes by:
6/28/2010
Lawyer: LawTalk, Attorney replied 8 years ago
LawTalk
LawTalk, Attorney
Category: Legal
Satisfied Customers: 37,876
Experience: I am a practicing attorney with more than 3 decades of experience in the legal field.
Verified

Good afternoon,

I'm sorry to hear of your dilemma.

You can not take funds from a chartible organization and convert them to your personal funds or give them to any private shareholder or individual---at least not without penalty.

The distribution of the funds to your children would constitute an excess benefit transaction and would be classified as taxable income and additionally an excise tax of 25% would be immediately payable. Failure to pay the tax when due could result in a 200% tax on the excess benefit transferred.

Additionally, the corporation will survive you and you can not will the funds held by the corporation to your children. You can however make them a part of the Board.

Here is a link to a site which will explain this in greater detail for you:

http://www.irs.gov/charities/charitable/article/0,,id=96099,00.html

 

I wish you and your family the best in your future.

 

 

Please don't forget that I only receive credit for having helped you when you click on the Accept Button located at my Answer.

Best regards,

 

Doug




Edited by LawTalk on 6/28/2010 at 8:18 PM EST
LawTalk
LawTalk, Attorney
Category: Legal
Satisfied Customers: 37,876
Experience: I am a practicing attorney with more than 3 decades of experience in the legal field.
Verified
LawTalk and 87 other Legal Specialists are ready to help you
Ask your own question now
Lawyer: LawTalk, Attorney replied 8 years ago
Good afternoon,

I'm sorry to hear of your dilemma.

You can not take funds from a chartible organization and convert them to your personal funds or give them to any private shareholder or individual---at least not without penalty.

The distribution of the funds to your children would constitute an excess benefit transaction and would be classified as taxable income and additionally an excise tax of 25% would be immediately payable. Failure to pay the tax when due could result in a 200% tax on the excess benefit transferred.

Additionally, the corporation will survive you and you can not will the funds held by the corporation to your children. You can however make them a part of the Board.

Here is a link to a site which will explain this in greater detail for you:

http://www.irs.gov/charities/charitable/article/0,,id=96099,00.html

I wish you and your family the best in your future.

Please don’t forget that I only receive credit for having helped you when you click on the Accept Button located at my Answer.

Best regards,

Doug

 


Ask Your Own Legal Question
Customer reply replied 8 years ago

Thanks for your help. I thought this is what you would find out.

Blessings,

Larry Wickes

Lawyer: LawTalk, Attorney replied 8 years ago

Same to you. Have a great week ahead.

 

Doug

Ask Your Own Legal Question
Was this answer helpful?

How JustAnswer works

step-image
Describe your issueThe assistant will guide you
step-image
Chat 1:1 with a lawyerLicensed Experts are available 24/7
step-image
100% satisfaction guaranteeGet all the answers you need
Ask LawTalk Your Own Question
LawTalk
LawTalk
LawTalk, Attorney
Category: Legal
Satisfied Customers: 37,876
37,876 Satisfied Customers
Experience: I am a practicing attorney with more than 3 decades of experience in the legal field.

LawTalk is online now

A new question is answered every 9 seconds

How JustAnswer works:

  • Ask an ExpertExperts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional AnswerVia email, text message, or notification as you wait on our site. Ask follow up questions if you need to.
  • 100% Satisfaction GuaranteeRate the answer you receive.

JustAnswer in the News:

Ask-a-doc Web sites: If you've got a quick question, you can try to get an answer from sites that say they have various specialists on hand to give quick answers... Justanswer.com.
JustAnswer.com...has seen a spike since October in legal questions from readers about layoffs, unemployment and severance.
Web sites like justanswer.com/legal
...leave nothing to chance.
Traffic on JustAnswer rose 14 percent...and had nearly 400,000 page views in 30 days...inquiries related to stress, high blood pressure, drinking and heart pain jumped 33 percent.
Tory Johnson, GMA Workplace Contributor, discusses work-from-home jobs, such as JustAnswer in which verified Experts answer people’s questions.
I will tell you that...the things you have to go through to be an Expert are quite rigorous.

What Customers are Saying:

Mr. Kaplun clearly had an exceptional understanding of the issue and was able to explain it concisely. I would recommend JustAnswer to anyone. Great service that lives up to its promises!

Gary B.Edmond, OK

My Expert was fast and seemed to have the answer to my taser question at the tips of her fingers. Communication was excellent. I left feeling confident in her answer.

EricRedwood City, CA

I am very pleased with JustAnswer as a place to go for divorce or criminal law knowledge and insight.

MichaelWichita, KS

PaulMJD helped me with questions I had regarding an urgent legal matter. His answers were excellent.

Three H.Houston, TX

Anne was extremely helpful. Her information put me in the right direction for action that kept me legal, possible saving me a ton of money in the future. Thank you again, Anne!!

ElaineAtlanta, GA

It worked great. I had the facts and I presented them to my ex-landlord and she folded and returned my deposit. The 50 bucks I spent with you solved my problem.

TonyApopka, FL

Not only did he answer my Michigan divorce question but was also able to help me out with it, too. I have since won my legal case on this matter and thank you so much for it.

LeeMichigan

< Previous | Next >

Meet the Experts:

Ely

Ely

Counselor at Law

24,658 satisfied customers

Private practice with focus on family, criminal, PI, consumer protection, and business consultation.

INFOLAWYER

INFOLAWYER

Attorney

22,843 satisfied customers

Licensed attorney helping individuals and businesses

JPEsq

JPEsq

Attorney

2,132 satisfied customers

Experience as general attorney, in house counsel, SSDI, Family Law attorney, and law professor

Law Educator, Esq.

Law Educator, Esq.

Attorney

44,266 satisfied customers

JA Mentor -Attorney Labor/employment, corporate, sports law, admiralty/maritime and civil rights law

Ellen

Ellen

Lawyer, Consultant

8,238 satisfied customers

25 years of experience helping people like you.

Guillermo Senmartin

Guillermo Senmartin

Lawyer

301 satisfied customers

Principal Attorney at Guillermo J. Senmartin, P.A.

Dimitry K., Esq.

Dimitry K., Esq.

Attorney

17,183 satisfied customers

Multiple jurisdictions, specialize in business/contract disputes, estate creation and administration.

< Previous | Next >

Related Legal Questions
Tina! My husband and I have a small ministry like initiative
Hi Tina! My husband and I have a small ministry like initiative to serve kids that are in foster care in Ohio. … read more
Attyadvisor
Attyadvisor
Doctoral Degree
8,337 satisfied customers
The Elder's of our church sold a parcel of property. At
The Elder's of our church sold a parcel of property. At there next meeting with the congregation they read: OPTIONS FOR EBC Use the money from the land sale for operating until it runs out. Use some o… read more
Law Educator, Esq.
Law Educator, Esq.
Attorney
Doctoral Degree
44,266 satisfied customers
I am currently working organization that has been using
I am currently working for an organization that has been using restricted donor funds to get by on our operating expenses, but is still reporting we have the full fund available. The board is aware bu… read more
Law Educator, Esq.
Law Educator, Esq.
Attorney
Doctoral Degree
44,266 satisfied customers
SCENARIO I plan on establishing a 501c3 organization to create
SCENARIO I plan on establishing a 501c3 organization to create an endowment fund. My current employer will match my contributions to my newly established 501c3 organization each calendar year as an em… read more
TexLaw
TexLaw
Attorney
Post-Doctoral Degree
4,347 satisfied customers
Some time ago I filed a application for 501c3 For my organization
Some time ago I filed a application for 501c3 For my organization by authoring (power of attorney) fee month's later new committee sworn in and they want to change the power of attorney to a different… read more
Delta-Lawyer
Delta-Lawyer
Doctoral Degree
3,510 satisfied customers
I have been working with the homeless in Northeast
I have been working with the chronic homeless in Northeast Dallas, Tx for 6 years. I have had quite a bit of success getting these people off the streets {I quit counting at 40} but I find I can be mo… read more
KUMI95
KUMI95
Attorney
Doctoral Degree
17 satisfied customers
How to start a foundation for my handicapped grown up child?
How do I start a foundation for my handicapped grown up child? Pretty much everything I now earn goes to his care anyway, and one work project I did may (or may not) earn some more and I'd like it to … read more
TexLaw
TexLaw
Attorney
Post-Doctoral Degree
4,347 satisfied customers
Thank you. Now, let me ask you this-If I tried to FOIA trip
Thank you. Now, let me ask you this-If I tried to FOIA trip records, was inappropriately referred to the said uncooperative 501c3 because the school system didn't keep records (which was really stupid… read more
MShore Law
MShore Law
Doctoral Degree
1,233 satisfied customers
I want to incorporate a Membership based group (not for profit)
I want to incorporate a Membership based group (not for profit) in California where the entity would be collecting Annual dues and user fees. Annual gross income would be under $50K. What type of corp… read more
MShore Law
MShore Law
Doctoral Degree
1,233 satisfied customers
We have a select youth baseball team and we would like to organize
We have a select youth baseball team and we would like to organize the team into a tax excempt non-profit corporation. This will make it easier for company's and individuals to make donations to the t… read more
MShore Law
MShore Law
Doctoral Degree
1,233 satisfied customers
Good Morning. I sit on the board of a newly founded non-profit
Good Morning. I sit on the board of a newly founded non-profit organization. We recently had one of our advisory board members die in a horrible car crash with his wife and 3 children. His family want… read more
JB-Umphrey
JB-Umphrey
Attorney & Counselor
Juris Doctor
606 satisfied customers
I OPERATE A 501C3 IN PHILADELPHIA PA. I WOULD LIKE TO OPERA
I OPERATE A 501C3 IN PHILADELPHIA PA. I WOULD LIKE TO OPERATE IN NEW ORLEANS AS WELL, OR TRANSFER THE 501C3 TO NEW ORLEANS TO OPERATE. IS THIS POSSIBLE TO OPERATE IN MULTIPLE CITIES OR TO TRANSFER CIT… read more
Richard - Bizlaw
Richard - Bizlaw
Juris Doctor
3,773 satisfied customers
An IRS section 501c6 organization sponsored a 501c3 (tax exempt
An IRS section 501c6 organization sponsored a 501c3 (tax exempt foundation with it's own Tax Id#/by-laws). Can the 501c3 foundation vote to dissolve itself and cease operations or does the original sp… read more
socrateaser
socrateaser
1,031 satisfied customers
Ive started a non-profit for vocational training in the field
I've started a non-profit for vocational training in the field of Building trades for challenged young adults. The corp is based in the state of Maine. A question has been asked about compensation for… read more
MShore Law
MShore Law
Doctoral Degree
1,233 satisfied customers
My husband an I are looking to start a nonprofit organization
My husband an I are looking to start a nonprofit organization to help the homeless rehabilitate so that they can move on and be productive citizens. We live in the state of Colorado. I was wondering h… read more
Roger
Roger
Litigation Attorney
Doctoral Degree
26,939 satisfied customers
We have a independent library board, a 501c3, which built a
We have a independent library board, a 501c3, which built a new library w/grant from Donald W. Reynolds. Inside the building is the library which is part of library system which has its own funding th… read more
Marcus Parker
Marcus Parker
Doctoral Degree
244 satisfied customers
Guidelines for establishing a non-profit, simple memorial ...
Guidelines for establishing a non-profit, simple memorial permanent endowment fund? Specifying guidelines for awarding funds to architectural design students?… read more
Alice Wright
Alice Wright
Research Expert
Bachelor's Degree
302 satisfied customers
Do all churches have to be 501c3 and are employees of the ...
Do all churches have to be 501c3 and are employees of the church allowed a reasonable salary?… read more
Matt Kesler
Matt Kesler
Business Owner/Law Student
Doctoral Degree
1,646 satisfied customers

DISCLAIMER: Answers from Experts on JustAnswer are not substitutes for the advice of an attorney. JustAnswer is a public forum and questions and responses are not private or confidential or protected by the attorney-client privilege. The Expert above is not your attorney, and the response above is not legal advice. You should not read this response to propose specific action or address specific circumstances, but only to give you a sense of general principles of law that might affect the situation you describe. Application of these general principles to particular circumstances must be done by a lawyer who has spoken with you in confidence, learned all relevant information, and explored various options. Before acting on these general principles, you should hire a lawyer licensed to practice law in the jurisdiction to which your question pertains.

The responses above are from individual Experts, not JustAnswer. The site and services are provided “as is”. To view the verified credential of an Expert, click on the “Verified” symbol in the Expert’s profile. This site is not for emergency questions which should be directed immediately by telephone or in-person to qualified professionals. Please carefully read the Terms of Service (last updated February 8, 2012).

DISCLAIMER: Answers from Experts on JustAnswer are not substitutes for the advice of an attorney. JustAnswer is a public forum and questions and responses are not private or confidential or protected by the attorney-client privilege. The Expert above is not your attorney, and the response above is not legal advice. You should not read this response to propose specific action or address specific circumstances, but only to give you a sense of general principles of law that might affect the situation you describe. Application of these general principles to particular circumstances must be done by a lawyer who has spoken with you in confidence, learned all relevant information, and explored various options. Before acting on these general principles, you should hire a lawyer licensed to practice law in the jurisdiction to which your question pertains.

The responses above are from individual Experts, not JustAnswer. The site and services are provided “as is”. To view the verified credential of an Expert, click on the “Verified” symbol in the Expert’s profile. This site is not for emergency questions which should be directed immediately by telephone or in-person to qualified professionals. Please carefully read the Terms of Service (last updated February 8, 2012).

Show MoreShow Less

Ask Your Question

x