In her book, Bequest Management for Charitable Organizations, Jasmine Sweetman offers insight and guidance into the process of bequest management for the charitable beneficiary. She rightly points out that as a result of the unfaltering generosity of Canadians, charities have been involved in bequest management for a long time. However, she asserts, and hence the need for the book, that estate administration has grown ever more complex over time.

In my opinion, this book is a welcome resource for charities throughout Canada. Just as the complexity in estate administration has grown, the interest of charitable organizations in obtaining estate gifts has also grown. Bequests are playing a much more important role in the financial health of charities, and as a result, charities, with renewed vigour, are pursuing these gifts with their living donors.

The book has been organized in a very logical and helpful fashion. It includes sections for Ontario, Alberta, and British Columbia that give it a national character and make it useful for charities right across Canada.

The first chapter, Introductions and Definitions, is the shortest, but is a must read for many of us in the charitable sector who have no background in legal terms. In a straightforward and understandable manner, it defines the most common terms encountered in estate administration. The chapter should not be glossed over, as it gives basic definitions and provides a foundation to understand the rest of the book.

From funeral to windup

Chapter 2, Estate Administration, covers the full process of estate administration from the funeral to the wind up of the estate. It outlines the steps in estate administration and the duties and responsibilities of the various professionals, including that of the charity itself.

Perhaps the most important insights for charities are in the section on the Charitable Beneficiary, where Sweetman outlines the rights and responsibilities of the charitable beneficiary. Sweetman states that in spite of the attitude of some professionals that charities are being ungrateful by asking too many questions, she clearly articulates that a charity not only has the right to make its presence known, but in fact has a fiduciary responsibility to do so.

Of great practical interest to charities, Chapters 3, 4, 5 cover legal fees, taxes, releases, costs, and accounting, and include a case study. These chapters are full of insights and sound advice.

Most charities will be familiar with the request to sign a release, but Sweetmen points out that charities should not feel pressured to sign, especially if the charity has some unresolved issues about the administration of the estate. She states that the release relates to the estate administration and not to a beneficiaries entailment. Even if the release is not signed, the estate trustee is under an obligation to deliver the gifts that the Will provides. The charity should not feel obliged to sign even if the trustee incorrectly states that it will not receive distribution until it has signed the release.

Another very practical example relates to a common request by estate trustees to include an indemnity clause in the release. Sweetman issues a strong caution about this practice, stating that the charity should delete the clause, as it may potentially be incurring a liability of an unknown amount.

Legal proceedings

In the final chapter, Estate Litigation, we are presented with an excellent overview of the various factors involving legal proceedings relating to the Will or claims against the estate. For many charities, legal wrangling in estate settlements are becoming all too common. Sweetman asks: Should a charity be an active participant in litigation? The answer is not straightforward and involves many factors, not the least of which are the objects of the charity. In addition, the charity and the directors personally owe certain duties – the charity must ensure that it is informed and the directors must act in good faith and in the best interests of the organization.

Litigation is not an easy matter, but with knowledge comes confidence. The book has imparted that knowledge and hopefully those charities facing estate litigation will have the confidence to stand on their rights.

This is a book I would recommend. There is only one comment to be made. Sweetman admirably fulfills her stated purpose of providing guidance to charities in bequest management, but I would have liked the author to have spent more time on how charities can work with their living donors to prevent those problems that later on give rise to estate litigation. It is my firm belief that in matters of litigation, prevention is better than a cure.

All in all, the entire book makes a good read. It should be kept close at hand, as it will make a ready reference piece for those occasions when it is needed.