Modify Constituent Record for this Planned Gift?

Heather Heyd

Hello, I'm sure this is obvious to everyone but me right now! Donor is deceased and we received a "lump-sum" payout from his retirement account (we were a beneficiary). Can I enter the gift in his record (as is - as an Individual record) or do I need to create an Estate of Jim X organizational record in order to record the gift? Main concern is following IRS requirements. Typically we create Estate of XX org records for estate gifts, so if this doesn't matter for any legal reasons, then I will follow internal procedures. But hoping for feedback on (1) IRS regulations and (2) what you would do in this scenario. Thank you! Heather

Melissa Graves 2

Heather Heyd:
Hello, I'm sure this is obvious to everyone but me right now! Donor is deceased and we received a "lump-sum" payout from his retirement account (we were a beneficiary). Can I enter the gift in his record (as is - as an Individual record) or do I need to create an Estate of Jim X organizational record in order to record the gift? Main concern is following IRS requirements. Typically we create Estate of XX org records for estate gifts, so if this doesn't matter for any legal reasons, then I will follow internal procedures. But hoping for feedback on (1) IRS regulations and (2) what you would do in this scenario. Thank you! Heather

It is not obvious and there are two schools of thought on this. You can do it either way but just be consistent. The IRS can't tell you how to store your data - only how you receipt it but they will not quibble over a receipt made out to the Estate of Jim X.

The camp that prefers to keep it on the individual record most often does so because it is from that indiviidual and the IRS looks at it as being from the individual (i.e. the estate does not have a separate tax id).

I am in the camp that prefers to use a separate record. I link them so I now which individual we are talking about but as an organization record I can create contacts for the estate includeing beneficiaries and lawyers. Also a deceased record is usually always excluded from mailings, but an estate record can remain in mailings when and if appropriate - addressed to an appropriate contact.