How Charitable Gifts Are Distributed During Probate in Illinois

Many people choose to leave part of their estate to a favorite charity, church, school, or nonprofit organization. Whether it’s a small percentage of an estate or a substantial bequest, charitable giving allows individuals to leave a lasting legacy and support causes that mattered to them during their lifetime.

But what happens after someone passes away? How does a charitable gift actually make its way from an Illinois probate estate to the intended organization?

The answer depends on the language of the will, the administration of the probate estate, and the duties of the executor.

Here’s how the process typically works in Illinois.

Step One: The Will Is Admitted to Probate

If the deceased owned assets that require probate, the executor named in the will files the original will with the Illinois circuit court in the county where the decedent resided.

Once the court admits the will to probate and appoints the executor, that individual becomes responsible for administering the estate.

The executor’s job is not simply to distribute property immediately. Instead, Illinois law requires several important steps before beneficiaries, including charities, can receive their gifts.

Step Two: The Executor Identifies Estate Assets

The executor must identify and gather the estate’s assets, which may include:

• Real estate
• Bank accounts
• Investment accounts
• Vehicles
• Personal property
• Business interests

The executor prepares an inventory and determines the value of the probate estate.

Only after understanding what assets are available can the executor determine how gifts under the will may be satisfied.

Step Three: Creditors Are Given an Opportunity to File Claims

Before beneficiaries receive their inheritances, the executor must address the estate’s debts.

Illinois law generally requires:

• Publication of a notice to creditors.
• Direct notice to known creditors when required.
• Payment of valid claims in accordance with Illinois law.

This creditor claim period is one reason probate cannot usually be completed immediately after someone’s death.

If the estate lacks sufficient assets, creditor claims and administrative expenses generally take priority over gifts made in the will.

Step Four: Taxes and Administrative Expenses Are Paid

Before distributing inheritances, the executor must also pay:

• Funeral expenses
• Court costs
• Attorney’s fees
• Executor’s fees (when applicable)
• Final income taxes
• Any estate taxes that may be due
• Other administration expenses

Only after these obligations have been addressed can the executor determine what remains available for beneficiaries.

Step Five: The Executor Follows the Instructions in the Will

Once debts and expenses have been paid, the executor distributes the remaining assets according to the will.

Charitable gifts may be structured in several different ways.

Specific Gifts

Sometimes a will leaves a particular item or dollar amount to a charity.

For example:

“I give $25,000 to the Oak Lawn Public Library Foundation.”

Or:

“I leave my collection of historical books to the local historical society.”

If sufficient estate assets remain, the executor distributes those gifts according to the terms of the will.

Percentage Gifts

Some wills leave a percentage of the estate to charity.

For example:

“I leave 20% of my residuary estate to my church.”

The executor first calculates the estate available for distribution before determining the charity’s share.

Residuary Gifts

Many charitable bequests involve the residuary estate.

The residuary estate consists of everything remaining after:

• Specific gifts
• Debts
• Taxes
• Expenses

have been paid.

For example:

“I leave the remainder of my estate equally between my two children and the American Cancer Society.”

In this situation, the charity receives its portion only after the estate administration has been completed.

Can a Charity Receive Property Instead of Cash?

Yes.

Depending on the language of the will, a charity may receive:

• Real estate
• Stocks
• Artwork
• Vehicles
• Jewelry
• Other tangible personal property

Sometimes the executor sells property first and distributes cash.

Other times, the charity receives the property directly.

The outcome depends on the will’s instructions and practical considerations involved in administering the estate.

What If the Named Charity No Longer Exists?

Occasionally, a charity named in a will has:

• Closed
• Merged with another organization
• Changed its legal name

When that happens, the executor may need to determine whether a successor organization exists or whether Illinois law allows the gift to be redirected in a manner consistent with the decedent’s charitable intent.

In some situations, particularly with gifts made for a specific charitable purpose—the court may apply legal doctrines that preserve the donor’s charitable intent if carrying out the exact terms of the gift has become impossible or impracticable.

Careful drafting can reduce uncertainty and help ensure your gift reaches the organization or cause you intended.

Can Family Members Challenge a Charitable Gift?

Sometimes.

Family members occasionally question charitable gifts if they believe:

• The will is invalid.
• The deceased lacked mental capacity.
• Someone exercised undue influence.
• The will was improperly executed.

However, simply being disappointed by a charitable gift is not enough to overturn it.

If the will was validly executed and reflects the testator’s intent, Illinois courts generally enforce those instructions.

Why Properly Identifying the Charity Matters

One of the easiest ways to avoid problems is to clearly identify the charitable organization in your will.

For example, include:

• The charity’s full legal name
• Its principal location, if appropriate
• The specific purpose of the gift (if any)

A vague description such as “my local animal shelter” or “the cancer charity” can create uncertainty and delay the administration of the estate.

Working with an estate planning attorney can help ensure your charitable intentions are expressed clearly.

Should You Tell the Charity About Your Gift?

Although not legally required, many people choose to notify a charity that they have included it in their estate plan.

Doing so can:

• Help the organization understand and honor your intentions.
• Allow the charity to discuss any restrictions or preferences.
• Confirm the charity’s legal name and contact information.
• Ensure the organization is prepared to receive the gift.

For larger gifts or scholarship funds, contacting the organization in advance can also help determine whether your intended use of the funds is practical and consistent with the charity’s policies.

How Can You Make Probate Easier for Charitable Gifts?

If charitable giving is part of your estate plan, consider:

• Reviewing your will every few years.
• Confirming that named charities still exist.
• Updating your estate plan after major life changes.
• Discussing significant charitable gifts with the organization beforehand.
• Coordinating beneficiary designations and trust provisions with your overall estate plan.

Thoughtful planning can help ensure your charitable legacy is carried out smoothly and according to your wishes.

The Bottom Line

Leaving a charitable gift in your will is a meaningful way to support the causes that matter most to you. During probate, the executor has a legal duty to gather estate assets, pay debts and expenses, and then distribute the remaining property according to your will, including any charitable bequests.

By carefully identifying your chosen charity and working with an experienced estate planning attorney, you can reduce the likelihood of delays, misunderstandings, or disputes and help ensure your legacy benefits the people and organizations you intended.

If you have questions about charitable giving, creating a will, establishing a trust, or administering a probate estate in Illinois, contact the Law Office of Jonathan W. Cole P.C. at (708) 529-7794 “Your Neighborhood Law Firm”.