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.