Judge deliberating on charity battle ruling
Deepa Bharath
A Superior Court judge is expected to decide soon who gets to keep
Newport Beach resident Penney Sue Bolton’s $1 million -- the Salvation
Army or Orangewood Children’s Foundation.
When Bolton, a widow with no children, died in March 2001, she left
most of her estate to her two favorite charities. But her estate involved
two parts. There was no question about how $2.8 million of her money was
to be divided because it was clearly stated in her will.
Accordingly, the Salvation Army and Orangewood received equal shares.
The question now is how the $1 million still left in her individual
retirement account is to be distributed.
The conflict arose because Bolton, while designating the beneficiaries
of that account, named the Salvation Army as the “primary” and Orangewood
as the “contingent” beneficiary -- which means the money would go to the
Salvation Army, and Orangewood would get it only if the Salvation Army
ceased to exist.
The Salvation Army says it is entitled to all of the $1 million based
on how Bolton designated the beneficiaries. But Orangewood contends that
it is entitled to half of that money because Bolton showed her intent to
divide all of her estate equally based on what she stated in her will.
Judge Richard Frazee Sr. took the matter into submission Wednesday and
is expected to make a ruling within a few days.
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