Published on All About Estates
By Malcolm Burrows on August 29th, 2024
I recently spoke to an estate lawyer who told me she would never recommend certain charities to clients. Why? Because of the way these charities treated estate trustees. Some charities are unduly litigious, grind on fees, and are obstreperous about releases. It’s not the first time I’ve heard this comment from estate professionals – and some traumatized lay executors and family members.
It’s hard to evaluate the validity of these accusations. I have worked at four major charities over the last 34 years. I sympathize with charities and their challenges with estate administration. There are administrative delays, clueless executors, double-dipping lawyers, legal challenges, family dysfunction, and in a few cases, outright fraud.
Many major charities employ experienced estate administrators. They all know each other. When named in the same will, they coordinate on administration and legal matters – partly to reduce costs and partly to provide a united front. They try to be responsible and uphold the testator’s charitable intent. This should be applauded.
So-called “difficult” charities conduct business in a way that erodes trust, or at least that is the perception among estate professionals. Charities, however, have a duty to be good fiduciaries and protect charitable property received via estate donations. Done right, the fiduciary obligation outweighs the potential reputational risk.
Malcolm Burrows, Philanthropic Advisor, Scotia Wealth Management
