Gifts to churches by elderly members are common. With an estimated $40 trillion being transferred between generations, there is significant opportunity for charitable giving. However, some gifts are challenged by family members due to concerns over mental capacity or undue influence. This article examines these issues and offers guidance for church leaders.
What Is Undue Influence?
Undue influence occurs when a donor’s free will is compromised through force, coercion, or overpersuasion. This can invalidate a gift made to a church or charity. Family members may claim that the donor was coerced or mentally incapable, especially if substantial gifts are involved.
Key Factors Considered in Undue Influence Claims
- Whether the gift was the result of hasty action.
- If the gift was concealed from others.
- Whether the beneficiary actively secured the gift.
- If the gift aligns with the donor’s previous declarations and plans.
- The donor’s age, physical condition, and mental health.
- Whether a confidential relationship existed between the donor and recipient.
- If the donor had independent legal advice.
Mental Capacity and Legal Considerations
To validate a gift, the donor must have sufficient mental capacity at the time of making it. This means understanding the natural recipients of their estate, their property, and forming a clear plan for its distribution.
Case Example: Curran v. Building Fund of United Church
This Vermont case highlights the legal complexities of undue influence. A testator amended their trust to include community organizations, including a church. Family members challenged the trust, citing mental incapacity and undue influence. The court upheld the trust amendment, citing evidence that the donor understood their decisions and acted of their own free will.
Guidance for Church Leaders
To reduce the risk of gifts being invalidated, church leaders can:
- Ensure donors obtain independent legal advice when drafting wills or trusts.
- Avoid situations where the church appears to coerce or influence decisions.
- Document all communications with donors to demonstrate transparency.
Reducing Risk of Legal Challenges
Following these best practices can help safeguard the church’s reputation and ensure gifts are implemented as intended by donors. Independent counsel, especially from attorneys not affiliated with the church, is critical in these cases.
Conclusion
As the number of elderly donors increases, so do potential challenges to their gifts. Church leaders must be prepared to navigate these situations with care, ethical considerations, and legal compliance. By fostering transparency and securing independent legal advice for donors, churches can honor donor intentions while reducing the risk of undue influence claims.
FAQs
What is undue influence?
Undue influence involves coercion or manipulation that compromises a donor’s free will when making a gift.
How can churches avoid undue influence claims?
Churches can avoid claims by ensuring donors seek independent legal advice and avoiding involvement in drafting wills or trusts.
What happens if a gift is challenged in court?
If a gift is challenged, courts will examine the donor’s mental capacity, evidence of undue influence, and the circumstances surrounding the gift.
Are gifts from elderly donors more likely to be challenged?
Yes, gifts from elderly donors may be scrutinized more due to potential concerns over mental capacity or susceptibility to influence.
