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The voice of Scotland’s vibrant voluntary sector

Published by Scottish Council for Voluntary Organisations

TFN is published by the Scottish Council for Voluntary Organisations, Mansfield Traquair Centre, 15 Mansfield Place, Edinburgh, EH3 6BB. The Scottish Council for Voluntary Organisations (SCVO) is a Scottish Charitable Incorporated Organisation. Registration number SC003558.

Legal issues over wills costing charities dear

 

Nearly all charities have probate delays

Charities say they are having to cut back on vital services over delays with probate.

Problems with probate - the legal right to deal with someone’s estate when they die – are affecting nearly every charity with research showing 99% facing hold-ups.

A study published by wealth manager Rathbones found that over a quarter of charities said they have had to cut jobs as probate delays have affected their finances.

Rathbones is responsible for £9.4 billion in funds under management for more than 3,000 charities and said that around 14% of each charity’s income is currently held up by probate issues.

This had led charities to make difficult decisions in order meet the financial gap.

Eight in 10 senior charity executives said the problems are affecting their recruitment plans while 51% said it had caused them to cut back on their services.

The research also found that 43% said they have sold assets, such as property, to fill the gap while 27% have made redundancies.

Andy Pitt, head of charities at Rathbones, said: “The logjam is not only adding to the financial stress of grieving families, with property sales falling through or having to pay interest payments on inheritance tax – but is also resulting in many senior charity executives having to make difficult decisions on how to cope with hindered cash flow.

“They don’t know how long they could be waiting to receive these much-needed funds and it’s impossible to budget or plan for the future.”

 

Comments

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Gareth Morgan
about 2 months ago

This article is very frustrating as it makes no mention of the Scottish context. In Scotland, wills are subject to "Confirmation" rather than "Probate" and the legal system is quite different from England & Wales. So unless Rathbones collected specific data about timescales in Scotland, this article is of little relevance to Scottish charities (except on the relative rare occasion when a Scottish charity receives a bequest from a donor who was domiciled in England & Wales).

It is also ridiculous to say that 99% of charities are facing probate delays given that the only a small proportion of charities receive any legacies at all. Surely TFN could have explored that issue with the authors?

But perhaps TFN could do some investigation of confirmation timescales in Scotland and whether that is affecting Scottish legacy-receiving charities - that would be very useful.