Best Practices for Estate Records

Options
Adriana Cavell
Adriana Cavell
Fifth Anniversary Photogenic First Comment
in Blackbaud Raiser's Edge NXT®: General Discussion
At my previous organizations, we've always created a new org record for an Estate and linked in the relationship tab to the deceased if they were previously known to us. At my current workplace, we convert the deceased's individual record into an org record, the idea being that it's important to have access to the historical data. (This causes problems when the spouse is also a donor) 


We have been reassessing how we as an organization use RE with an eye to best practices. One of the topics that has come up is if we should be converting these individual records or creating new Estate records. 


If anyone wants to share their thoughts on this matter, I'd greatly appreciate it. 
Tagged:

Comments

  • Tatyana Leifman
    Tatyana Leifman
    Tenth Anniversary 25 Likes 10 Comments Photogenic
    I second Karen.  That is exactly what I was told by a former CFO of ours--the Estate and the deceased are two different legal entities and an organizational record should be created for the Estate.  We also link the two records so that one can navigate from either record to the other to see the giving history (the relationships we use are "linked with past giving history" and "linked with estate."  And we have an attribute on the deceased person's record that indicates there is a Bequest in the pipeline or was already received.  My organization, years ago, used to simply convert the deceased to an organizational estate record (or worse, just change the Constituency code to "Estate" in some cases) and record the bequest on that record, albeit with a specific appeal code indicating "bequest."  One of the major downsides that I found to that method (besides the legal issue) is reporting and analysis.  It becomes a mess to include or exclude these records as needed.  I'm certainly glad that we stopped doing this quite a few years ago so I don't have to deal with these records in reports and analysis unless I am doing some very deep dive into past history and trends.


    Tatyana
  • Elizabeth Rich
    Elizabeth Rich
    Tenth Anniversary 10 Comments 25 Likes Photogenic
    We do not create estate records. The bequest is posted on the person's record, even though the person is deceased.
  • Emma Zicher
    Emma Zicher
    Tenth Anniversary First Comment Loyalty Badge Activity: First Reply
    We also create a new org record for the Estate and link it in the relationship tab to the deceased. We have an "Estate" constituent code and a naming convention "Estate of deceased name" for searching purposes.
  • JoAnn Strommen
    JoAnn Strommen Community All-Star
    Ancient Membership 2,500 Likes 2500 Comments Photogenic
    I third or fourth, wherever we're at, for creating separate record and not converting individual record. Leave a individual to maintain info and relationships.
  • Adriana Cavell
    Adriana Cavell
    Fifth Anniversary Photogenic First Comment
    For those who create a separate record, do you soft-credit the gifts back to the individual record?
  • AnnMarie Schell
    AnnMarie Schell
    Fifth Anniversary 25 Likes 10 Comments Photogenic

    Elizabeth Rich:

    We do not create estate records. The bequest is posted on the person's record, even though the person is deceased.

    I agree. Sometimes a legal estate is not even established (if it doesn't go through probate), so technically there is no organization.

  • Tatyana Leifman
    Tatyana Leifman
    Tenth Anniversary 25 Likes 10 Comments Photogenic
    Hi Adriana,


    We don't soft credit the decedent.  We link the records via the Relationship tab and, unless there are some rare unusual circumstances, we name the estate record as "Estate of xxxx," where xxxx is the decedent.  We also put an attribute on the decedent's record that indicates either an "open estate," if we are expecting the bequest or parts thereof, or "closed estate," if everything has been settled and we have received our share.


    Tatyana
  • Karen Hartt
    Karen Hartt
    Ancient Membership 100 Comments 100 Likes Name Dropper
    Hi Adriana,

    I'll chime in with my 2 cents.

    When we receive a probate notice we create an Estate of record (org), link with the deceased donor and create an attribute on the estate record called Estate Status so we can track the probate doc through to bequest received. We soft credit the donor for the estate gift for full giving history. If we have the donor recorded as a bequest on the prospect tab proposals we update the amount funded through the estate. These gifts are coded with the Bequest Realized appeal.

    If we receive an Estate of check without a probate notice we follow the same process with the exception of the Estate Status is marked completed and the appeal is Unknown Bequest Realized. This way we can track all known and unknown bequests.

    Hope this helps.

    Karen
  • Keith Wilson 2
    Keith Wilson 2 Community All-Star
    Sixth Anniversary 250 Likes 100 Comments Photogenic
    I'm following this post as I am in the process of trying to clean up our constituent codes. We have constituent codes of Will, Estate, Trusts, etc...and there seems to be very little rhyme or reason on which record got which code (and some have both or all three!) It's a mess! I am also interested in the best practices for handling when a donor inquires about including us in their estate plan, versus those who actually do include a bequest. knowing it could be years later before the bequest is fulfilled. I was curious if anyone uses the Proposal module for these?


    Similarly, I had a CFO at a previous org that echoed what others have said about the Estate being a separate tax entity from the individual, but it pertained to Trusts. Living donors who set up revocable trusts for their assets have different tax requirements, and it could be a mistake recording these as individual gifts instead of creating a record for the Trust. How are you handling gifts from a Revocable/Irrevocable/Living Trust?
  • AnnMarie Schell
    AnnMarie Schell
    Fifth Anniversary 25 Likes 10 Comments Photogenic

    Keith Wilson:

    I'm following this post as I am in the process of trying to clean up our constituent codes. We have constituent codes of Will, Estate, Trusts, etc...and there seems to be very little rhyme or reason on which record got which code (and some have both or all three!) It's a mess! I am also interested in the best practices for handling when a donor inquires about including us in their estate plan, versus those who actually do include a bequest. knowing it could be years later before the bequest is fulfilled. I was curious if anyone uses the Proposal module for these?


    Similarly, I had a CFO at a previous org that echoed what others have said about the Estate being a separate tax entity from the individual, but it pertained to Trusts. Living donors who set up revocable trusts for their assets have different tax requirements, and it could be a mistake recording these as individual gifts instead of creating a record for the Trust. How are you handling gifts from a Revocable/Irrevocable/Living Trust?

    Hi Keith,

    I had a tax attorney tell me that Living Trusts and Revocable Trusts are the same thing, and it is more like a separate checking account for protection against IRS taxes. It is only Irrevocable once they are deceased, but he did not tell me that there was a different Tax ID for a deceased person. Only that the "Estate of" title was used in his office for filing legal documents with assets. When an "estate" has to go to probate, it is to settle debts and/or to determine the beneficiaries' inheritance. If there is no beneficiary dispute or debt, there is no need for probate court. However, he also cautioned me that rules differ between states, which may be why so many Bb users do it differently. The IRS has their own set of rules, but unless there is property generating income while the estate is being settled, e.g., an orange grove or rental units, there is no separate Tax ID.


    Regardless, Blackbaud will tell you it is up to your organization how you want to record their gifts, just be sure you are consistent. Unless there is a separate Tax ID, we left it under the deceased persons name, and just changed the mailing format and salutation. Again, it is up to your organization if you want to track planned giving through proposals; we do.

    Hope this helps!
    Ann-Marie

  • Elizabeth Rich
    Elizabeth Rich
    Tenth Anniversary 10 Comments 25 Likes Photogenic
    I work in higher education, and everywhere I have worked has used constituent codes pretty much strictly for Voluntary Support for Education reporting purposes. We have a few others thrown in, but they are a subset of the other codes, like Trustee Emeritus/a. They are used for giving hierarchy for the VSE. We would not use something like bequest or estate. We don't usually create estates as a separate entity. We post the bequest to the donor.
  • AnnMarie Schell
    AnnMarie Schell
    Fifth Anniversary 25 Likes 10 Comments Photogenic

    Elizabeth Rich:

    I work in higher education, and everywhere I have worked has used constituent codes pretty much strictly for Voluntary Support for Education reporting purposes. We have a few others thrown in, but they are a subset of the other codes, like Trustee Emeritus/a. They are used for giving hierarchy for the VSE. We would not use something like bequest or estate. We don't usually create estates as a separate entity. We post the bequest to the donor.

    Maybe I should have mentioned that I also work in higher ed. It may be the reason for doing things differently across the donor landscape. It seems, though, that what the tax attorney shared with me should translate across all constituencies.

  • Lara Couture
    Lara Couture
    Ninth Anniversary 10 Comments Photogenic Name Dropper
    For those that create a separate org record for an Estate, I have a few follow-up questions...
    1. Do you create the estate record when you receive the MOI?
    2. How do you handle proposal/opportunities that could be attached to Planned Giving?
    3. We recently converted to RE & RE NXT and I'm trying to get a handle on all of this. Can a estate payment fulfill the planned gift if it the planned gift is in the individual record (from conversion)?
    We are a higher Ed and we used to keep estate records separate. I had a couple consultants that recommended keeping one record and adding the Estate constituency. I'm looking for consistency. Looking for a decision. :)
  • Deborah Drucker 2
    Deborah Drucker 2
    Ninth Anniversary 25 Likes 10 Comments Photogenic
    At my last two organizations, we created a separate Estate record and linked them. At my current organization, we convert retain the individual record, but just name it "Estate of XXXX." I have a problem with the latter approach, first, because in most cases the Estate IS a separate legal entity, but also because it really messes with any analysis you want to do on historical giving trends at your organization if you do not have the records separated.
  • Barbara Kunkel
    Barbara Kunkel
    250 Likes Fourth Anniversary 100 Comments Name Dropper
    Hi Tatyana,

    I am working on a policy and procedure for Estate Records, what relationship types to you use to link the individual's record to the Estate organization record?

    Thanks,

    Barb
  • Tatyana Leifman
    Tatyana Leifman
    Tenth Anniversary 25 Likes 10 Comments Photogenic
    Hi Barbara,


    The Relationship types with use are "Linked with Estate Record" on the decedent's record and "Linked with past giving history" as the reciprocal from Estate to decedent.


    Tatyana
  • Jeannie Goings
    Jeannie Goings
    Fifth Anniversary 100 Comments 100 Likes Photogenic
    Barbara Kunkel‍ we use: Benefactor, Beneficiary, Executor, Administrator, and Trustee. Each has a different legal function.

Categories