CCK Releases Standards of Excellence for Bequest Management

PROVIDENCE, R.I., March 7, 2023 /PRNewswire/ -- As the nation ages over the next quarter century, charities anticipate a 'Golden Age' for bequests. Charities recognize that the Baby Boomer generation has amassed more wealth than any other generation and is more deliberate about how their wealth is invested before and after death. Increasingly, savvy individuals and estates are demanding that charities embrace best and replicable practices that preserve the full intentions of their bequests.

Chisholm Chisholm & Kilpatrick LTD – a public interest law firm with years of expertise in bequest management – has developed and released the non-profit industry's first known Standards of Excellence for Bequest Management. The standards provide individuals with a clear understanding of what they should demand from charities before making a bequest. The Standards of Excellence also provide charities with clear protocols for practices that should be in place to ensure that they are equipped to fully protect donor wishes and receive the entire intended gift.

"As Baby Boomers age and pass, they will leave behind more wealth than any previous generation and their gifts will generate a larger share of a charity's revenue than many anticipated. This new generation of donors demand top-notch management of their bequests, and they expect charities to complete the stewardship of their gift after they pass," said Lindy Nash, Bequest Supervising Attorney, Chisholm Chisholm & Kilpatrick LTD. "CCK's Standards of Excellence for Bequest Management is the first clear articulation of best and replicable practices that every charity should embrace and every donor should demand. Our Standards of Excellence were developed through our years of expertise advising and litigating on behalf of charities who sought to uphold the true intent of their donors."

CCK's Standards of Excellence include seven recommendations:

• Standard One: Identify and Resolve Issues in Key Documents. Beneficiaries must conduct a careful review of all testamentary documents and related filings to identify and resolve ambiguities and inconsistencies that can cause major problems later on. This requires a degree of legal and sometimes financial expertise.
   
• Standard Two: Maintain Useful Files. Without a complete and accessible file, a charity will miss critical issues and deadlines.
   
• Standard Three: Monitor Fiduciary Performance. Beneficiaries must be alert to "danger signals" that emerge about a fiduciary's performance. Fiduciary failures can be due to simple negligence, careless use of estate assets or, in some cases, outright fraud. Bequests lost in this manner are sometimes never recovered.
   
• Standard Four: Review Before Signing. Signing of documents without careful review may be the most frequent error that charities make during bequest administration. Receipts, releases, indemnities, and other such items frequently contain unacceptable and draconian terms that can cost a charity money. Proper review and assessment of these common documents often require a specific set of legal skills.
   
• Standard Five: Create Procedures for Risky Assets. Charities should undertake immediate and sufficient due diligence before accepting potentially risky noncash assets.
   
• Standard Six: Dispute and Defend If Necessary. Sometimes, a charity will have to decide whether to litigate to protect their donors' wishes or address a controversy arising during estate administration. A penultimate step may be the more cost-effective option to mediate or arbitrate. An organization has a tough decision to make when committing its financial resources in pursuit of a gift that may or may not materialize as hoped. At such times, sound legal advice is needed.
   
• Standard Seven: Keep Track of the Numbers. In many cases, a detailed review of inventories, accountings, and investment portfolios is prudent. This responsibility may extend into ensuring that any estate assets that are sold (cars, houses, boats, collections) fetch fair market value. This is especially true if a charity is a residuary beneficiary.

CCK encourages charities to use these Standards of Excellence when stewarding their matured bequests.

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About Chisholm Chisholm & Kilpatrick LTD
Chisholm Chisholm & Kilpatrick LTD is a nationwide law firm practicing Veterans Law, ERISA & Long-Term Disability Insurance Litigation, and Bequest Management.  CCK has offices in Providence, RI and Houston, TX.  More information available at https://cck-law.com.

Media Contact
Mike Raia, Half Street Group (for CCK)
401.340.9425 | [email protected]

SOURCE Chisholm Chisholm & Kilpatrick LTD