Sorting Out Charity Donations from the Estate

If the Will includes gifts to charity, handling these correctly is an important part of your role as executor. It ensures the deceased's wishes are honoured and meets legal requirements. It might seem like just another payment, but getting the details spot on matters. Let's make sure these legacies reach the right place.

1. Pinpoint the Charities Named

First, carefully read the Will to identify every charity mentioned. Note down the full name provided for each one. Sometimes names can be very similar, so precision is key from the start.

2. Verify the Details (This is Crucial)

Charity names can change, or they might merge or even close. You must verify that the charity exists and get its correct, current details.

• Check the Registered Charity Number: Most Wills include this number. Use it to look up the charity on the official register for England and Wales (Charity Commission), Scotland (OSCR), or Northern Ireland (CCNI), depending on where the charity operates.
• Confirm the Name and Address: The register will confirm the charity's official name and registered address. This is who you need to contact and pay.
• What if the Charity Changed? If the charity has merged or changed its name, the register should provide details of the successor organisation. If it has closed, the Will might specify what happens, or you may need legal advice. Don't just guess or send money to a similarly named organisation.

Why Bother? Sending funds to the wrong place is a serious error. Verification protects you and ensures the donation fulfils the Will's intent.

3. Work Out Their Share

The Will specifies what the charity receives:

• Specific Cash Legacy: A fixed amount, e.g., "£1,000 to Charity X".
• Share of the Residue: A percentage or fraction of the estate after debts, taxes, expenses, and specific gifts are paid, e.g., "10% of the residue to Charity Y".

Calculate the exact amount due based on the Will's instructions and your final estate accounts.

4. Making the Payment

Once you've verified the charity and calculated the amount:

• Contact the Charity: Write to them (using the registered address), enclosing a copy of the relevant part of the Will naming them. Explain you are the executor and are ready to pay the legacy. Ask how they wish to receive the funds (e.g., bank transfer or cheque).
• Make the Payment: Use the estate funds to make the payment via the charity's preferred method. Use a clear payment reference, such as the deceased's name.
• Get a Receipt: This is essential. Request a formal receipt from the charity confirming they have received the donation. Keep this safe with the estate records.

5. Record Keeping is Key

Meticulous records are vital:

• Estate Accounts: Detail the charity donation (name, registered number, amount paid, date paid) in the final estate accounts you prepare for beneficiaries.
• Inheritance Tax: Gifts to registered charities are usually exempt from IHT and can sometimes reduce the overall IHT rate on the rest of the estate if significant amounts are left. Ensure the charity details and amounts are correctly reported on the IHT forms. Keep the payment receipts as evidence for HMRC.

Wrapping Up

Handling charitable legacies requires attention to detail, but it's a rewarding part of honouring the deceased's wishes. By verifying the charities, calculating the correct amounts, making payments properly, and keeping solid records, you ensure these important gifts are handled correctly and transparently.

Another key task ticked off. You are ensuring every aspect of the Will is respected and actioned. Good work.