The Oklahoma Bar Journal November 2024

change jobs or retire, future lead ership may not feel comfortable serving or the charity may elect to serve in financial but not health care capacities. While the charity can collect a fee for serving as trustee, the demands of the client’s care may outweigh the benefits of the amount gifted to the charity whose limited resources may need to be applied to the mission of the charitable organization instead of caring for the donor. For these rea sons, a contingency plan is prudent. If you are looking for a ful filling complement to your prac tice that also accomplishes your clients’ objectives, consider incor porating charitable giving conver sations and strategies. Doing so fosters meaningful connections with your clients, encourages tax-efficient estate planning and funds lasting societal good. CONCLUSION

More clients will be subject to the estate tax at this reduced exemption amount, prompting forward-thinking estate planners to preemptively assess methods to reduce or eliminate the nega tive tax ramifications. For those limited clients facing potential gift and estate taxes, charitable giving offers an excellent alternative. 18 Making charitable gifts during life or at death will help clients min imize the payment of estate tax resulting from the lower gift and estate tax exemption amounts. A devoted charity may agree to serve as trustee, personal represen tative or agent under financial or health care power of attorney for clients with a substantial charita ble estate. While childless clients most often find this an attractive option, some clients with chil dren prefer a trusted charity to serve in lieu of family members because of relationship concerns, geographic proximity, addiction or other reasons. The Oklahoma Charitable Fiduciary Act (OCFA) imposed two primary requirements on a charitable organization’s ability to serve as trustee, which impedes most donors from considering this option. 19 First, the charitable share must meet or exceed 25% of the total estate value. 20 Second, no single noncharitable beneficiary may receive a greater share than the overall share allotted to charity. 21 If possible, proactive attorneys should consider nominating an alternative fiduciary in the event the charity declines to serve or cannot serve under the OCFA. Foreseeable circumstances include: the charity may be ill-equipped to serve, a trusted individual may HOW TO GIVE AND RECEIVE FIDUCIARY SERVICES

ENDNOTES 1. Rule 6.1, Oklahoma Rules of Professional Conduct, 5 O.S. § Rule 6.1 (OSCN 2023); Oklahoma Bar Association Standards of Professionalism, §1.5. 2. Oklahoma Bar Association Standards of Professionalism, §1.1. 3. Glenn Gamboa, “Charitable giving in 2022 drops for only the fourth time in 40 years: Giving USA report” (June 20, 2023), https://bit.ly/4eNg7L1. 4. 26 U.S.C. §§170, 2055. 5. For detailed research and findings, see BNY Mellon, “Charitable Giving Study,” (March 2022), https://bit.ly/4gQQA5K, and U.S. Trust, “The U.S. Trust Study of the Philanthropic Conversation” (2015), https://bit.ly/3Y4ddMt. 6. Russell N. James, “Phrasing the Charitable Bequest Inquiry,” 27 Voluntas 998 (2016). 9. Cabinet Office Behavioral Insights Team, “Applying Behavioral Insights to Charitable Giving,” https://bit.ly/3BCQQ7Y (last visited Dec. 6, 2023). 10. I.R.C. §4966(d)(2). 11. Rule 2.1, Oklahoma Rules of Professional Conduct, 5 O.S. § Rule 2.1 (OSCN 2023). 12. Association of Fundraising Professionals, “The Donor Bill of Rights,” §7, https://bit.ly/4eZ1ftg (last visited Dec. 6, 2023). 13. BNY Mellon, “Charitable Giving Study,” (March 2022), https://bit.ly/4gQQA5K. 14. 60 O.S. §300.11 et seq. (OSCN 2023). 15. Rule 1.6, Oklahoma Rules of Professional Conduct, 5 O.S. § Rule 1.6 (OSCN 2023). 16. Tax Cuts and Jobs Act, Pub. L. No. 115-97, 131 Stat. 2054, 2091 (2017). 17. Id. 18. I.R.C. §§2522 (gift tax), 2055 (estate tax). 19. 60 O.S. §​ 301.1 et seq. (OSCN 2023). 7. Id. 8. Id.

20. Id. 21. Id.

ABOUT THE AUTHOR

Christa Evans Rogers, J.D., AEP, CAP and CFRE, lives in Tulsa with her husband and fellow attorney, Timothy

Rogers. Her practice centers on charitable gift planning, and she serves as the vice president of client engagement for WatersEdge. Ms. Rogers has volunteered on the boards of the OBA YLD, the Eastern Oklahoma Association of Fundraising Professionals and the OU College of Law Young Alumni Board and is a past-president of the Oklahoma Association of Charitable Gift Planners. She also serves on the Oklahoma Bar Foundation Board of Trustees.

Statements or opinions expressed in the Oklahoma Bar Journal are those of the authors and do not necessarily reflect those of the Oklahoma Bar Association, its officers, Board of Governors, Board of Editors or staff.

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THE OKLAHOMA BAR JOURNAL