No one is allowed to own a charitable trust or corporation. One can
be on the board of directors, an officer, employee or a member of a
charity. But it can't be owned, and no individual is allowed to
benefit from an "investement" in a charity.
So if Lorraine's trust is a qualified charitable trust, complies with
all the rules of Section 501(c)(3) of the Tax Code, and has approval
from the IRS after filing Form 1023, then yes, the payment can be
But then Lorraine isn't allowed to take that money home, perhaps
other than as salary for services actually rendered. The money has
to be used to support the trust's exempt purpose. And if Lorraine
takes the money home, she is taxed on it, which wipes out her
OK, I realize I originally read your post incorrectly.
The answer to your question is a qualified "yes." If the trustee of
the trust (well, technically the executor of the estate) agrees, the
estate can file a joint tax return with the surviving spouse. So if
the estate makes a charitable contribution, it would go on the joint