Monday, June 29, 2009

Too Bad Brandeis and The Barnes Foundation Aren't in Texas

From yesterday's NY Times:

Texas has adopted a law intended to ensure that so-called orphan trusts, which are left under the stewardship of lawyers or banks after their founders have died, continue to comply with the founders’ wishes. The law, which was signed this month by Gov. Rick Perry, a Republican, bars trustees from moving a trust or foundation out of Texas without court approval.

The law further directs the courts to determine whether moving a trust out of Texas would interfere with the trustee’s ability to comply with the donor’s intentions. The trustee must also notify the state attorney general’s office, which oversees charities, of any plans to move a trust out of Texas. State charity regulators, nonprofit leaders and others complain that with no family members to encourage compliance with the original donors’ wishes, banks and lawyers have wide latitude to change the way trusts operate and decide which charities will receive grants.

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