Charitable distributions from an estate – What Personal Representatives really need to check

When administering an estate, the Personal Representative must confirm the identity of all beneficiaries before making distributions. Where a beneficiary is a registered charity, this process can be more straightforward than for other beneficiaries because the charity's details are publicly available and independently regulated by the Charity Commission. However, there are circumstances where the Personal Representative may not be certain what is required or what information is publicly available. 

Charities are generally treated as entities, rather than private individuals. For that reason, the Charity Commission will usually have the required information to identify the correct charity, as follows:

• The charity's full name and any other names they may be known by;
• The registered charity number;
• The registered office address;
• Details of the charity's trustees;
• Confirmation of the charity's current registered status.

The Charity Commission website can also identify the Trustees and provide constitutional documents.

This information enables the Personal Representative to verify that the charity named in the Will is the correct legal entity entitled to receive the gift. As the role of the Charity Commission is to regulate charities, the Personal Representatives can take peace of mind from the publicly available information in order to discharge their duty of ensuring that they pay to the correct entity.

It is also important to check the terms of the Will to see who at the charity can provide a valid receipt for any inheritance. Older Wills may have express terms included that nominate a particular individual, but more recent professionally drafted wills may refer to the STEP (Society of Trust and Estate Practitioner) provisions, which incorporate additional administrative powers for the Trustees (depending on the version used and whether the special or standard conditions are incorporated).

In many cases, the Charity Commission register provides sufficient independent evidence of the charity's existence, status and governing structure. Requests for further documentation may be required where the charity is not registered with the Charity Commission or if there is uncertainty about the identity of the charity named in the Will.

It is important for the Personal Representative to consider what may be practically needed and weigh this against what is cost and time-effective, to try to avoid any potential delays that may be caused by requesting excessive documentation. 

As a matter of practice, where a registered charity is expressly named in a Will, providing the charity's Charity Commission record will usually be sufficient to identify the beneficiary and verify its entitlement. Unless there is genuine uncertainty as to identity or authority, further constitutional documentation is unlikely to be necessary. Personal Representatives should, however, ensure that the payment receipt is given by an individual authorised to act on behalf of the charity and, where relevant, refer to the terms of the Will or any incorporated STEP provisions regarding who can provide a valid receipt.