Readers >> In my last column, I responded to a reader who wanted to include gifts to particular political organizations in his trust document. His estate attorney advised him that political gifts could not be done through a trust, which is not entirely accurate. A trust can make charitable donations and my column outlined the strict parameters within which it could be accomplished. I also wrote that there are charities that will make donations to political parties to further the charity’s mission and outlined an example by using a “local land trust.”

I was contacted by a representative of two of our local land trusts to clarify that, while the land trusts can (and do) lobby and support conservation bond measures, there is a strict prohibition against funding candidates. I am appreciative of the reader’s email, and it gives me an opportunity to clarify that while the land trusts he represents are 501(c)(3) charitable organizations, only a 501(c)(4) social welfare organization can engage directly in political activities. An example of a 501(c)(4) organization is the Sierra Club which can make political donations and may engage in legislative activities in furtherance of its purposes.

Always great to receive comments from readers and have the opportunity to clarify. The bottom line is that if you are including political donations in your trust, there are extremely strict guidelines. It is easy to run afoul of the comprehensive and sometimes confusing regulations surrounding politics and donations. Who would have thought?

Q My wife and I set up our trust to keep our children’s funds in a trust and provides that they can receive money for their “health, education, maintenance and support.” My attorney explained that this will keep the money safe but make it available for their needs. We plan to name my brother as the trustee but have named a professional trustee as his backup in case he dies before our kids reach age 55 which is when they get all the trust’s assets. With a provision like this, how will the trustee dole out the funds? We are concerned it may be restrictive.A We get this question often. Generally, your trustee has the discretion to distribute the funds for the purposes outlined and, most likely, the trustee will make every effort to make funds available to your kids in a way that best reflects how you would have supported them, if you were still here. To help your trustee make the best decisions, I recommend that you write out what you believe your kids may need and any parameters within which you would like funds expended.

Support, for example, may mean paying rent for an apartment, providing a down payment on a home or buying a home outright for the child. What would be your preference? Health could mean paying the premiums on health insurance, providing a monthly stipend to be used for health care, paying for sex reassignment surgery or only providing funds “in a medical emergency.” Similarly, “maintenance” could mean buying a car so your child can get to work, providing a monthly allowance, paying off a credit card every month or buying them clothes.

As you can see, there is a broad spectrum when we say “health, education, maintenance and support.” In the instructions you leave for your trustee, try and be as descriptive as possible. You may not be able to hit on every instance that may arise, but the instructions will, at least, give your trustee an idea of your values and provide insight into how you would like to best support your kids. Finally, your instructions should be couched as recommendations and suggestions and not as a “direction.” We don’t want your kids using the written suggestions to legally challenge your trustee. They should be additive, not directive.

Liza Horvath has over 30 years of experience in the estate planning and trust fields and is the president of Monterey Trust Management, a financial and trust management company. This is not intended to be legal or tax advice. If you have a question call (831) 646-5262 or email liza@montereytrust.com