Estate Planning

A recent news report by our local media noted that Ms. Elizabeth Jordan of Marine on St. Croix, Minnesota provided for a $227,000 gift in her will to her local library. Although Ms. Jordan died in 2000 her gift has not been utilized yet because there is a small controversy regarding how the money should be spent -- some residents want it spent on a new building and some prefer the purchase of new books.

Today Ms. Jordan's gift totals $335,000 given the seven years of compounded interest it has earned. While Ms. Jordan's gift is a wonderful example for the rest of us as we consider our own estate planning it also provides a legal lesson since Ms. Jordan's will simply stated that her gift was to be used --

http://wcco.com/local/local_story_203161158.html

"in any manner which is deemed appropriate by the Board of Administration."

The added challenge here is that the Marine on St. Croix Library does not have a "Friends of the Library" entity that she could have willed the money to -- such a group would have simply acquired more books -- so the general wording of Ms. Jordan's gift has created this seven year delay as the library's management explores options.

There is a lesson here for all of us to be very exact with the wording used in our own philanthropic gifts.

Todd