Question 1

Accepted Answer

Once a call, letter, or email notifying the station of a pending estate gift is received, a development officer should work in partnership with the legal and finance departments to ensure smooth communication with all involved parties.

Distributions from estates and trusts can take longer than many expect, from a few months to several years. Active bequest administration sometimes can help improve the speed of probate, trust, life insurance, and retirement account distributions. More importantly, active bequest administration can lead to stronger relationships with donor families and their professional advisors, which can then lead to generational giving and increased referrals. The development department is the primary contact point with fiduciaries in the administration of realized planned gifts in most organizations. You will no doubt experience a few complicated situations that may delay receipt money from estates, but having in place processes for moving matters along internally at your station will help.

Question 2

Accepted Answer

Your member/donor tells you that they’ve left your station in their will. (This happens more frequently the more planned gift marketing you do). You need to have a plan for how you will respond to this information.
From the estate attorney either before or after the designation is made. (If before, it often is because the attorney wishes to confirm a legal name, tax identification number, or preferred bequest language for their client who is naming your station in their will. In such cases, ask if the donor would like to have any contact with you to learn more about the organization. You should also ask if the donor intends to restrict the gift in any way.)
A letter from the attorney informing you that the donor has left your station in their will and the will is now in probate.
A donor’s spouse or other relative will return a piece of mail marked “deceased.” Work with your data processing department to ensure you are notified immediately if any person on your bequest intention list is marked as deceased.

Question 3

Accepted Answer

Be sure to thank the personal representative/executor/trustee for their work in facilitating your donor’s generosity. You also may wish to reach out to other surviving family members to provide condolences and express gratitude for the donor’s gift. This is especially important for surviving spouses. Try to find an obituary, if possible. Here is a sample letter to use with a personal representative/executor/trustee.

Internal tracking of estates in administration can be done through a CRM system or even through a spreadsheet. Here are samples of tracking sheets to help collect information:

While many fiduciaries and attorneys work to administer estates and trusts as expeditiously as possible, some bequests will require more monitoring or work on your behalf to make sure the process is moving along. Scheduling a visit with the estate attorney, particularly if there is a complex situation with the estate and/or the estate is particularly large, may be warranted.

If your station does not have an internal legal department—and many times even if it does—the station should engage an attorney experienced in trusts and estates for complex situations as they arise.

Question 4

Accepted Answer

Depending upon the size and complexity of the estate, your station may receive occasional partial distributions rather than a single lump sum. Keep track of each payment received and the expected balance remaining (if known). Be sure to send an acknowledgement or receipt letter to the attorney or personal representative, executor, or trustee when those distributions are received.

If the attorney does not include a copy of the instrument governing the bequest (e.g., the will or trust agreement), you should request a copy so your counsel can confirm your station’s interest. If the bequest is a percentage or a part of the residue of the trust (instead of a gift of a specific dollar amount), your station also should receive a copy of the estate or trust inventory and accounting. These should be reviewed before counsel approves signing any consent or release forms requested by the attorney, trustee, or personal representative/executor.

Question 5

Accepted Answer

While it may be tempting to use such gifts for current operations (and sometimes specific campaigns or projects make use of such gifts appropriate), absent budget emergencies it generally is more prudent and in line with the expectations of many donors to use the funds in a way that will provide longer-term benefit to the organization. In many cases, boards direct unrestricted bequests to endowment, whether administered internally or by a third-party partner like a community foundation or the station’s bank’s charitable services group. Some organizations carve out a certain dollar amount of bequests for current use each year and add the balance, if any, to endowment.

If a gift is restricted by donor designation and your station accepts it, the organization is bound by state law to use the gift as intended. In all states except Pennsylvania, the relevant statute governing use of donor-restricted gifts is the Uniform Prudent Management of Institutional Funds Act (UPMIFA). Your station should have controls in place both in your finance department and on the program side to make sure obligations are met and the donor’s wishes are carried out.

Stations that steward planned gifts well and maintain a reputation for doing so will attract further and larger planned gifts in the future. By building infrastructure and sound practices now, you are helping build your station’s future through the generosity of your donors.

Question 6

Accepted Answer

To Estate Attorneys and Executors (used once you’ve been notified of a gift):

To Family Members:

Acknowledgement to Donor's Family

To Donors/Identified prospects:

Question 7

Accepted Answer

Once a call, letter, or email notifying the station of a pending estate gift is received, a development officer should work in partnership with the legal and finance departments to ensure smooth communication with all involved parties.

Distributions from estates and trusts can take longer than many expect, from a few months to several years. Active bequest administration sometimes can help improve the speed of probate, trust, life insurance, and retirement account distributions. More importantly, active bequest administration can lead to stronger relationships with donor families and their professional advisors, which can then lead to generational giving and increased referrals. The development department is the primary contact point with fiduciaries in the administration of realized planned gifts in most organizations. You will no doubt experience a few complicated situations that may delay receipt money from estates, but having in place processes for moving matters along internally at your station will help.

Question 8

Accepted Answer

Your member/donor tells you that they’ve left your station in their will. (This happens more frequently the more planned gift marketing you do). You need to have a plan for how you will respond to this information.
From the estate attorney either before or after the designation is made. (If before, it often is because the attorney wishes to confirm a legal name, tax identification number, or preferred bequest language for their client who is naming your station in their will. In such cases, ask if the donor would like to have any contact with you to learn more about the organization. You should also ask if the donor intends to restrict the gift in any way.)
A letter from the attorney informing you that the donor has left your station in their will and the will is now in probate.
A donor’s spouse or other relative will return a piece of mail marked “deceased.” Work with your data processing department to ensure you are notified immediately if any person on your bequest intention list is marked as deceased.

Question 9

Accepted Answer

Be sure to thank the personal representative/executor/trustee for their work in facilitating your donor’s generosity. You also may wish to reach out to other surviving family members to provide condolences and express gratitude for the donor’s gift. This is especially important for surviving spouses. Try to find an obituary, if possible. Here is a sample letter to use with a personal representative/executor/trustee.

Internal tracking of estates in administration can be done through a CRM system or even through a spreadsheet. Here are samples of tracking sheets to help collect information:

While many fiduciaries and attorneys work to administer estates and trusts as expeditiously as possible, some bequests will require more monitoring or work on your behalf to make sure the process is moving along. Scheduling a visit with the estate attorney, particularly if there is a complex situation with the estate and/or the estate is particularly large, may be warranted.

If your station does not have an internal legal department—and many times even if it does—the station should engage an attorney experienced in trusts and estates for complex situations as they arise.

Question 10

Accepted Answer

Depending upon the size and complexity of the estate, your station may receive occasional partial distributions rather than a single lump sum. Keep track of each payment received and the expected balance remaining (if known). Be sure to send an acknowledgement or receipt letter to the attorney or personal representative, executor, or trustee when those distributions are received.

If the attorney does not include a copy of the instrument governing the bequest (e.g., the will or trust agreement), you should request a copy so your counsel can confirm your station’s interest. If the bequest is a percentage or a part of the residue of the trust (instead of a gift of a specific dollar amount), your station also should receive a copy of the estate or trust inventory and accounting. These should be reviewed before counsel approves signing any consent or release forms requested by the attorney, trustee, or personal representative/executor.

Question 11

Accepted Answer

While it may be tempting to use such gifts for current operations (and sometimes specific campaigns or projects make use of such gifts appropriate), absent budget emergencies it generally is more prudent and in line with the expectations of many donors to use the funds in a way that will provide longer-term benefit to the organization. In many cases, boards direct unrestricted bequests to endowment, whether administered internally or by a third-party partner like a community foundation or the station’s bank’s charitable services group. Some organizations carve out a certain dollar amount of bequests for current use each year and add the balance, if any, to endowment.

If a gift is restricted by donor designation and your station accepts it, the organization is bound by state law to use the gift as intended. In all states except Pennsylvania, the relevant statute governing use of donor-restricted gifts is the Uniform Prudent Management of Institutional Funds Act (UPMIFA). Your station should have controls in place both in your finance department and on the program side to make sure obligations are met and the donor’s wishes are carried out.

Stations that steward planned gifts well and maintain a reputation for doing so will attract further and larger planned gifts in the future. By building infrastructure and sound practices now, you are helping build your station’s future through the generosity of your donors.

Question 12

Accepted Answer

To Estate Attorneys and Executors (used once you’ve been notified of a gift):

To Family Members:

Acknowledgement to Donor's Family

To Donors/Identified prospects:

Planned Gift Stewardship

Joe Thiegs

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