A Sermon on the Mount (Sinai): Enforceability of Charitable Pledges Against an Estate and Guidance for the Estate Planner and Benevolent Personal Representative

In Florida, personal representatives of estates have a tough decision to make when it comes to honoring charitable pledges made by the deceased. If the pledge doesn’t meet certain criteria, the estate could be sued for paying it and may not get a tax deduction. There are three options for the personal representative, ranging from risky to cautious, when deciding what to do with the pledge. The personal representative has two options for paying a pledge to charity from the estate.

Option 1: The personal representative pays the pledge and includes it on the proof of claim, but risks being held responsible for any problems that come up later, like if the pledge is found to be unenforceable or not tax-deductible.

Option 2: The personal representative includes the pledge on the proof of claim as a debt to be paid and waits to see if anyone objects before paying. This option also has risks, as someone could still bring up problems with the pledge later on.

In both options, the personal representative should have the charity sign an agreement to give the money back if there are any problems later on. This will help protect the estate’s money. The personal representative needs to follow specific steps to pay a charity pledge from the estate. They can also seek help from an estate planner to make the process easier. An estate planner can help by addressing the payment of the charity pledge in the donor’s will. This can help simplify the decision-making for the personal representative and protect the donor’s charitable intentions. In simple terms, if someone leaves money to a charity in their will, it’s important to use clear language to make sure the money actually goes to the charity. This can protect the person in charge of the will and make sure the charity gets the money. The person in charge of the will should consider things like the size of the donation and whether the estate has to pay taxes. It’s also important to think about the relationship between the person who died and the charity. Ultimately, the person in charge of the will should remember that taking care of family and loved ones is important too. High school students should honor pledges and promises made to charitable organizations in wills, but if there are legal issues, they should seek advice from an attorney. It’s important to fulfill these promises so the estate can receive tax deductions. The Florida Bar wants its members to learn about their responsibilities to the public, make sure that the legal system is fair, and help to improve the study of law.

Source: https://www.floridabar.org/the-florida-bar-journal/a-sermon-on-the-mount-sinai-enforceability-of-charitable-pledges-against-an-estate-and-guidance-for-the-estate-planner-and-benevolent-personal-representative/