Independent Administration for Charities: Protecting Legacy Income and Reducing Risk

It’s a situation many legacy officers will recognise; a charity is named as executor and residuary beneficiary of an estate, or an appointed executor renounces or proves unable to act. What initially appears to be a generous legacy can quickly become a complex administrative responsibility.

Estates may involve multiple bank accounts, uninsured or high-value chattels, rental properties with sitting tenants, business interests, overseas assets, or unresolved family disputes. While the potential gift may be substantial, accepting executorship can expose a charity to prolonged administration, diversion of internal resources, potential liability, and reputational risk — all of which can erode the value of the legacy itself.

In these circumstances, an independent administrator can become invaluable.

What is an independent administrator or trustee?

An independent administrator or trustee is a qualified professional appointed by the court, by deed or under a power of attorney to manage an estate or trust where the named executors or trustees are unable or unsuitable to act.

For charities, this can remove much of the day-to-day administrative burden while providing reassurance that the estate is being managed impartially and in accordance with the testator’s wishes.

When should charities consider an independent administrator?

Charities should consider appointing an independent administrator if:

• Executors or beneficiaries are in dispute
• Existing executors face conflicts of interest or cannot act
• Administration has become challenging or delayed
• Executors are becoming overwhelmed by the role
• The estate includes complex assets requiring specialist expertise
• There is no valid will and beneficiaries cannot agree who should act

Why appoint an independent party?

Appointing an independent administrator or trustee can simplify the process and provide peace of mind for all involved. Unlike family or friends, independent professionals have no personal interest in the estate. Their role is to act fairly and focus on what’s best for the estate and its beneficiaries.

For charities, this separation can help reduce the risk of disputes, protect reputation, and ensure that difficult or sensitive decisions are taken objectively.

Why choose a trust corporation instead of an individual?

A trust corporation is a specialist organisation authorised and regulated to act as administrator or trustee. Compared with individual appointments, trust corporations offer several practical advantages, including

• Specialist knowledge – Nationally recognised experts with STEP and ACTAPS memberships
• Regulated and accountable – Subject to strict rules and oversight
• Continuity and stability – No risk of illness, retirement, or death interrupting the process
• Impartial decisions – Acting solely in the best interests of beneficiaries
• Additional powers – Ability to perform legal tasks individuals cannot, such as applying for grants or replacing trustees

These features can be particularly valuable where estates involve complex assets, contentious issues, or heightened reputational sensitivities.

Independent administration in practice

In practice, these type of appointments are often used where charities wish to step back as executor/trustee while remaining involved as beneficiaries. This allows charities to retain oversight and input on key decisions without assuming responsibility for the practical or legal risks of administering the estate.

How we can help – AMPA Trust Corporation

AMPA Trust Corporation, our firm’s own trust corporation, is authorised to act as an independent administrator or trustee. It provides charities with impartial estate management and specialist expertise where needed, helping to maintain transparency, manage risk, and safeguard legacy income.

Our independent administration offering is led by Tamsin Walker, legal director in our trust and estate disputes team, working closely with Andrew Wilkinson, partner and head of trust and estate disputes, and one of the directors of AMPA Trust Corporation. Both are nationally recognised for their expertise in contentious and non-contentious trust and estate matters, supporting charities and individuals across the UK.

We combine charity-specific knowledge, comprehensive support across litigation, property, tax, and charity law, in addition to being a member of the Charity Commission panel member and a nationally recognised specialist team with international reach through the Multilaw network. Our approach prioritises clear communication, regular reporting, and transparent processes to help charities manage costs efficiently while safeguarding legacy income and reputation.

Real-life example

We are currently acting for a national charity named as executor and residuary beneficiary of a supporter’s estate, which proved unexpectedly complex. The estate included a large classic car collection, rental properties, queries over the testator’s tax compliance during his lifetime, and claims under the Inheritance (Provision for Family and Dependents) Act 1975.

The charity’s legacy team faced significant challenges if they accepted the role of executor:, significant resource diversion, limited in-house expertise, potential conflicts of interest as both sole beneficiary and executor and reputational risks.

By appointing AMPA Trust Corporation as independent administrator, the charity renounced executorship while retaining its beneficiary position. This meant they still had some input and control over the important decisions as the residuary beneficiary. AMPA is now managing valuations, investigating tax issues, assisting with the legal claims, and progressing the estate administration. This approach will deliver a substantial legacy to the charity as intended, without additional risk or resource strain.

Next steps for charities

Charities facing complex estate administration or potential disputes should consider independent appointment early. An Independent can help:

• Reduce operational and reputational risk
• Ensure impartial, professional management of the estate
• Allow the charity to remain involved as a beneficiary without assuming full administrative responsibility

Early consideration of these options can help charities navigate complex estates efficiently and protect valuable legacies.

If your charity is facing complex estate administration or potential disputes, we can help safeguard your legacy income and reputation. We understand that every pound matters to your cause; our approach prioritises transparency, clear communication, and timely distribution.

For more information or to discuss how we can support your charity with IA services, please contact Tamsin Walker for a confidential, no-obligation chat.