16.1.1 Procedure for Estate Gifts After Death
When a parish or school is notified of a bequest
from a trust, will, annuity, or insurance policy, the first step should
be to contact the Office of the Legal Counsel
at the archdiocese and advise the department of the gift. Generally the
trusts and estates lawyer in the Office of the Legal Counsel will be
able to advise and assist the location through the process. Some gifts
may transfer through the court process known as probate and the parish
or school will receive notice through court documents. Other gifts
coming from a trust, annuity, or life insurance policy may be delivered
to the school or parish by the trustee administering the trust, the
company handling the annuity or insurance, or the family of the donor.
Most
estates and trusts pass smoothly through the probate or administration
process, but the process is subject to a large body of legal rules and
requirements that make it important for the archdiocese to monitor the
process and provide any needed legal advice. Counsel can identify the
occasional irregularity (for example, excessive fees charged or improper
accounting of the estate assets) that if unrecognized would deplete or
eliminate the gift. While the issues, documents, or amounts involved may
not always seem significant, these transfers can create liability and
problems that are significant and that may not be anticipated at the
time. The archdiocesan trusts and estates lawyer acts as a liaison
between the parish and the attorneys representing the estate to
coordinate the legal transfer. Counsel will also retain a record of the
transfer, including a copy of the trust or will, in case of any future
dispute concerning whether the gift was used in compliance with the
donor's intent.
A donor's gift may be specifically
directed to the archdiocese or given to the archdiocese for the benefit
of a school or parish. When given for the benefit of a school or parish,
the gift is administered by the archdiocese, with the proceeds either
being transferred to the location or to the location's Investment Portfolio
account. All amounts in excess of three months' operating expenses shall be transferred to the location's Investment Portfolio account (see Banking Relationship).
As a tax-exempt organization, the archdiocese and its locations are not required to pay taxes on donations received, and donations are generally tax deductible to donors, subject to income tax laws and regulations. See "Tax-Exempt Status of the Archdiocese and All Locations" in Taxes and Other Government-Required Reporting. Donors may request confirmation of a parish's or school's tax-exempt status. The donor may be provided with: