Written by Tori Keyte, Trainee Solicitor in our Private wealth disputes department.
Leaving gifts to charities in a will is common for testators and represents a large portion of income received by charities. A testator may leave a charitable gift to express gratitude for support received during their lifetime, if they have no family to leave their estate to, or if they wish to reduce their inheritance tax liability.
The recent case of Dryden v Young & Others [2024] EWHC 1096 (Ch) provides clarification as to the courts’ approach to charitable gifts and serves as a reminder of the importance of drafting appropriate charitable provisions.
The deceased, Marjorie Thompson, died in 2020 leaving a will which divided her estate worth approximately £1.48m equally between 15 charities. The issue was that the identity of seven of these charities was unclear, with some no longer existing, or changing names.
One of the challenges for the court was Clause 13 of the will, which prevented a charity from receiving their portion of the estate, should they change their name or merge with another charity.
The law stipulates that a gift in a will fails if there is uncertainty of object, that is, if it cannot be clearly determined who the beneficiary of the gift is. The courts were therefore tasked with considering whether the seven gifts to the ambiguous charities were to fail for uncertainty of object, pass by the intestacy rules, or make the gifts cy-pres.
The court applied the doctrine of cy-pres, which consists of taking an approach which is ‘as close as possible’ to the testator’s intentions in situations where it is impossible to follow the strict wording of the will.
In all cases the court identified a suitable charity to receive the gifts, despite the unusual nature of Clause 13 of the will. The judgment clarified how the courts will approach cases where the intended charitable beneficiary is unclear and more importantly, highlights the ambition of the courts to give effect to charitable gifts.
Dryden v Young is a useful example of the complexities and costs that can arise where a will is not drafted accurately. Ensuring that your will is drafted with clear certainty will avoid costly disputes between parties at a later date.
