When a charity is notified that someone has left them a gift in their Will, it raises important questions. What happens next? Who should be contacted? How long will it take to receive the gift?

Knowing what to expect can make it easier for a charity to navigate the legal and administrative steps.

Step 1: Confirm what your charity is entitled to

Legacy gifts can take different forms, such as a specific sum of money, an asset (like stocks or real estate), or a percentage of the estate. The first step is understanding exactly what has been left to your charity.

As a general rule, if your charity is named as a beneficiary in a Will, you must be notified by the executor of the estate. If the gift is a specific bequest—meaning a set amount—the charity is entitled to see the portion of the Will that describes the gift. If the charity is a residual beneficiary of the estate, it has the right to review the entire Will.

Step 2: Review any conditions attached to the gift

Testamentary gifts are often “undesignated”, meaning that the Will does not specify a particular use for the gift. A charity can accept an undesignated gift and use it in whatever manner they think is best. This can include using the gift to fund an area of greatest need, or even to cover administrative or overhead expenses.

Alternatively, a gift in a Will might be “designated” for a specific purpose, program, or department within the organization. If a charity accepts a designated gift, it is obligated to use it for the particular use described in the Will.

In some cases, the charity may not be able to fulfill the conditions or purposes set out in the Will. This can happen, for example, if a department or program referred to in the Will no longer exists. In these cases, it’s best to contact a lawyer who specializes in charity and not-for-profit law in your province, as there may still be opportunities for the charity to receive the gift.

Step 3: Work with the executor

Receiving funds from an estate takes time and, like any other beneficiary, a charity may not receive its gift right away. An estate must go through the administration process, which can take months or even years.

There is a general rule, known as the “Executor’s Year”, that gives the executor about a year from the date of death to settle the estate before beneficiaries should expect their inheritance. This time allows for gathering assets, paying debts, and handling legal and tax matters.

One major factor affecting this timing is whether the Will needs to be probated in Court. Processing times vary, but in larger cities like Toronto, it can take up to a year just to obtain probate.

Even if probate is granted quickly, some estates take longer to settle, especially if they involve overseas assets, complex property valuations, or disputes among beneficiaries. Keeping open communication with the executor can help you to understand the estate's progress and get a clearer, more realistic timeline for the distribution of your gift.

Step 4: Handle challenges

While many estate gifts are straightforward, complications sometimes arise.

If the Will is contested, the distribution of assets—including charitable gifts—may be put on hold until the dispute is resolved. If your charity is involved in a contested estate, it’s important to take a few key steps.

• Seek legal advice to understand your rights and whether the charity has a role to play in the litigation.
• Review notes or records of past discussions with the donor, as this may help support the charity’s position (if it is being questioned).
• Staying in touch with the executor is also crucial to track developments and understand how the dispute may impact the gift.

Step 5: Accept the gift and issue a tax receipt

Once the estate is ready to distribute the gift, the charity can accept it and complete any necessary paperwork. If the estate requests a tax receipt, it must be issued in the name of the estate, not the deceased donor. This ensures tax benefits apply correctly.

Who can help?

Navigating estate gifts can be complex, and professional guidance can make the process smoother. Estate lawyers can review documents, clarify legal terms, and help resolve disputes. Tax advisors ensure compliance with CRA regulations when issuing receipts or handling restricted gifts. Planned giving specialists can provide strategic advice on managing estate gifts and planning for future bequests.

Final thoughts

Handling a gift in a Will requires patience and some understanding of legal and financial details. Some charities plan ahead by working with professionals and setting up processes for handling estate gifts. Others may receive a surprise bequest and need to figure things out as they go.

If you can plan ahead, great. If not, focus on the key steps: confirm the gift, work with the executor, resolve any challenges, and make sure the funds are accepted properly. Seeking help along the way can make the process smoother while ensuring the donor’s wishes are honored.

Daniel Goldgut is the co-founder of Epilogue, an innovative online platform revolutionizing estate planning in Canada. With a background in law and years of experience in private practice, Daniel transitioned from a legal career to entrepreneurship, driven by a passion for making Wills and estate planning more accessible and affordable for everyone. He collaborates closely with charities to enhance their legacy giving programs, helping organizations grow their impact. daniel@epiloguewills.com