Date published: 8th August 2022

Litigation involving charities can be drawn out and frustrating, particularly those relating to legacy gifts. The Charity Act 2022, set to be introduced later this year, is intended to curb bureaucratic controls on charity management.

It is hoped this legislation will lead to earlier settlements which will not only save parties time and money, but it will also allow family members to grieve the loss of their loved one rather than be embroiled in litigation.

Do you have issues with your loved one’s Will? Get in touch and speak to our Contentious Probate expert.

The Charity Act 2022 will make it easier for families.

Current regulation makes it difficult for other parties to have access to any legacies left to a charity. The duty of trustees is to act in the charities best interest, although this often makes it difficult to compromise with another party and can even lead to expensive litigation that can damage the charities reputation.

If the charity feel they have a moral obligation to do so, the new act will allow trustees to make significant ex gratia without consulting the Charity Commission for England and Wales.

Call today to learn more about how the new legislation.

Other important information about The Charity Act.

Large charities are usually the most likely to receive significant legacy payment. Therefore, those with income over £1million will be able to make ex gratia payments of up to £10,000.

If a fundraising campaign raises too much or too little to deliver its aim, trustees can spend up to £1,000 on other purposes without consulting their donors.

Trustees will also be able to delegate the decision-making power to others within the charity.

Other measures in the act include service changes to how charities sell, lease or transfer land, as well as enabling the charities to pay trustees for the goods they supply.

If you are still unsure about the finer points of The Charity Act 2022, or if you have any other questions involving Will or legacy disputes, then get in touch today.

If you need advice on a dispute, get in touch with one of our experts today on 0151 282 1700, or make an enquiry.