A simple gift made by someone in their will can provide a primary source of income for charities, although this is not always as straightforward as it sounds.

Notwithstanding the principle of testamentary freedom under English law, it is not uncommon for legacy disputes to arise when it comes to charitable bequests.

Indeed, relatives can raise all sorts of challenges, from the validity of the deceased’s will to claims for financial provision for dependants. Needless to say, this can place a charity in the difficult position of deciding whether to defend their stake, notwithstanding the potential risk of reputational damage, as well as the litigation and costs risks involved.

Below we briefly examine how these types of dispute can arise and the risks involved in defending charity legacy disputes.

The different types of charity legacy disputes

A charity legacy dispute can arise in several different ways, although perhaps the most common scenario is where financial provision has not been made within the deceased’s will for a loved one and a claim is made to the court to vary the distribution of the deceased’s estate.

An Inheritance Act claim can be made against the deceased’s estate within six months of the issue of the Grant of Probate by certain categories of person, provided they can show that they were financially dependent on the deceased and that the deceased did not make adequate provision for them in their will.

Additionally, there are a number of circumstances in which a deceased’s family may seek to contest the validity of the will, and although this is highly unlikely to involve any direct allegations against the charity itself, a finding by the court in the family’s favour could serve to entirely negate any charitable bequest.

By way of example, the validity of a will can be challenged where it is argued:

• The will has been improperly executed, ie; the signing of the will has not been witnessed correctly.

• The deceased lacked the mental capacity when drawing up and signing the will, ie; s/he was not of sound mind.

• The deceased was coerced into making and/or signing the will, ie; s/he was forced into agreeing to certain provisions.

• The will is fraudulent, ie; the document, or some part of it, has been forged.

The risks involved in defending a charity legacy dispute

When deciding whether to defend a challenge made to the provisions of the deceased’s will, the guidance provided to trustees by the Charity Commission is that they have a duty to act in the best interests of their charity, together with a duty to protect and, where necessary, to recover, assets belonging to the charity.

First and foremost, therefore, it is important to ascertain exactly what sums are involved, not least if the charity has been named as a residuary beneficiary rather than being bequeathed a specific sum of money. The trustees can then begin to determine whether litigating any legacy dispute is in fact in the charity’s best interests.

The trustees should also make further inquiries as to the nature of any challenge raised by the deceased’s family, including the extent of any evidence in support, so as to assess the charity’s prospects of success.

Needless to say, seeking expert legal advice from a specialist in charity legacy disputes will not only help to determine the best course of action to take, based on the facts of the case, but also help the trustees to discharge their duties to protect and recover all charitable assets.

Legal disclaimer

The matters contained herein are intended to be for general information purposes only. This blog does not constitute legal advice, nor is it a complete or authoritative statement of the law, and should not be treated as such.

Whilst every effort is made to ensure that the information is correct, no warranty, express or implied, is given as to its accuracy and no liability is accepted for any error or omission. Before acting on any of the information contained herein, expert legal advice should be sought.