In supporting our Will Writing Services, we recognise that it is increasingly common for you to administer estates that include charitable gifts. Charitable estates account for 16% of all estates at probate. We understand that charities are sometimes perceived as more challenging beneficiaries. Our aim is to make the process as straightforward as possible when charities are named in your clients’ Wills, so that the generous final wishes of our supporters, and your clients, are honoured. It might not always be obvious why we ask for certain pieces of information, but this article explains what charitable beneficiaries typically request and why.
Charities have a legal duty to ensure they receive all funds due and that those funds are used for their charitable purposes. As heavily audited organisations, charities must follow charity accounting principles, which require them to account for a legacy when it becomes ‘probable’ that it will be received — typically from the point at which a grant of probate (or confirmation in Scotland) has been issued. To stay informed, many charities subscribe to a probate notification service called Smee & Ford, which alerts them when they are named in a Will and when a grant has been issued. While most executors do notify charities, delays or missed communications can occur due to address changes or charity mergers. As a result, charities may reach out first following a Smee & Ford notification.
Charities generally prefer email communication over post. Our email address is legacyprofessionals@cancer.org.uk, and the legacy management officer, who is your main point of contact, will provide their direct email address during the administration process. When multiple charities are remembered in a Will, one may offer to act as the lead charity. We frequently take on this role as it simplifies correspondence, coordinates charity responses, and reduces your workload.
Charities receiving a share of the residuary estate will often request the Will and details of estate assets and liabilities (or a copy of the IHT205 or IHT400, if that’s easier for you to share) early in the process. This helps charities meet auditing requirements, as mentioned above, and also allows us to estimate the value of the generous gifts left to us. Legacies are crucial to the financial health of most UK charities. Legacies are crucial to the financial health of most UK charities, funding over a third of Cancer Research UK's work. Knowing the likely value of each legacy gift helps charities plan future charitable activities and projects.
We understand that more challenging aspects of estate administration may arise, and we welcome queries. Charities are happy to provide support wherever possible. Common queries we receive include:
Misdescription of charity names in Wills
Conditional or restricted legacies
Inheritance Tax calculations involving exempt beneficiaries (such as charities)
Capital gains tax savings through appropriation of assets (see below)
Requests for charities to act as executor
Capital gains and asset valuations
Charities often request asset or probate valuations (e.g. property, shares) to demonstrate to auditors that a fair market value has been obtained and to assess potential capital gains tax liabilities. If assets increase in value after death, executors may appropriate them to charities before sale, potentially avoiding tax. Legacy teams can support you in appropriating assets, which could result in substantial tax savings for the estate. Last year, probate professionals saved Cancer Research UK over £350,000 in capital gains tax by appropriating properties to us prior to sale. This money could fund the Cancer Research UK Manchester Institute for 1 week. Work at this institute spans the whole spectrum of cancer research; from programmes investigating the molecular basis of cancer, to those focused on developing new treatments. World-class facilities in the institute, including the imaging and histology labs, are helping to pave the way for new discoveries.
Many members of our Legacy Team have worked in private practice and understand that frequent updates take time and resources. Our team typically only follows up after several months. If delays occur (e.g. slow property sales or waiting for HMRC clearance), informing the charity helps avoid unnecessary contact.
It is standard practice for residuary beneficiaries to be provided with a copy of the estate accounts. As mentioned previously, charities are required to ensure they receive the full value due from the estate to support their charitable objectives and are strictly audited. Legacy teams are therefore diligent in reviewing estate accounts and may occasionally request clarification or supporting documents such as valuations or completion notes to satisfy auditors.
R185 forms provide additional and valuable income for charitable beneficiaries. Thank you for providing these forms, which help ensure that the testator’s gift achieves as much as possible for charities. Last year, Cancer Research UK received over £170,000 in additional income from R185 forms kindly prepared by probate professionals. This money could help fund 3 clinical research nurses for a year. These nurses are clinical experts who raise awareness of our trials and support and monitor patients during their treatment.
Thank you for all your hard work in administering charitable legacies. We fully appreciate that it’s a complex task, but it makes a meaningful difference to the charities your clients wished to support. We are keen to work with probate professionals like yourselves. If you have any feedback or suggestions that could help you administer estates with charitable legacies, please reach out to us at legacyprofessionals@cancer.org.uk. We would love to hear from you.
