Understanding Chattel Disputes in Charity Legacies

Charities often receive generous gifts through wills, ranging from financial donations to personal items (known legally as chattels), which can include jewellery, artwork, furniture, collections and even beloved pets and animals. While such gifts can be meaningful and valuable, they also carry a risk of dispute, particularly when the donor’s intentions are unclear or contested by family members.

Disputes over chattels can delay estate administration, strain relationships with executors and families, and even lead to legal action. For charities, this can mean reputational harm, financial cost, and the loss of a gift intended to support their mission.

Common causes of disputes

Chattel-related legacy disputes typically arise in several scenarios:

• Vague or general references in the will (e.g., “my jewellery” or “my collection”) that lack specificity.
• The item is no longer in the donor’s possession at the time of death, leading to confusion over whether the gift still applies.
• Items mentioned only in a letter of wishes, which is not legally binding.
• The chattel goes missing or is damaged during the estate administration process.
• Family members contest the gift, claiming sentimental value or asserting that the donor had changed their mind.
• Multiple beneficiaries are named, but the item cannot be divided.

How are such disputes resolved?

Executor discretion

If the will gives the executor discretion to distribute chattels, they may decide who receives the item. Where an individual chattel cannot be easily dived or shared e.g. a car, then in the absence of an agreement the item will be sold and the sale proceeds shared between the beneficiaries.

However, this can lead to disputes if beneficiaries feel the decision is unfair or contrary to the deceased’s wishes. In such cases, the executor must act reasonably and impartially and may need to justify their decision if challenged.

Selection

For those instances where there are large collections, or several chattels, then a different approach may be required. In Butler v Butler [2016], the High Court resolved a dispute between four siblings over the Butler family collection – 502 pieces of 17th-century Chinese porcelain gifted to them by their father, Sir Michael Butler. The parties couldn’t agree as to how the chattels should be divided.

Two siblings proposed that they each took turns to select an item until the collection had been fully divided (a turn-based selection process), while the others argued the collection should remain intact or be bought out. The court ruled in favour of division, stating:

• The parties’ parents had collected the pots without intending that they should be preserved as a single collection. Therefore, they could justifiably be divided between the parties.
• Each sibling was ruled to have a one-quarter share in each item.
• The collection was readily divisible, and the proposed method was fair.
• Cultural value and provenance concerns did not override the legal right to division.
• The buyout proposal was too vague and unworkable.

This case illustrates how even well-documented gifts can lead to complex disputes, and how courts may intervene to ensure equitable outcomes.

Disclaiming chattels

Charities may sometimes choose to disclaim a chattel (formally refusing the gift) if it does not align with their charitable objectives, or it would be too costly to maintain. For example, a large sculpture may require specialist storage, insurance, or conservation, which could outweigh its benefit to the charity.

Before disclaiming a gift, charities should:

• Seek legal advice to understand the implications.
• Communicate clearly with executors and family members.
• Document the rationale for refusal to protect against reputational damage.

Rather than disclaiming the gift, it may be possible to reach an agreement with another family member or beneficiary that they purchase the chattel from the charity. This can be a good compromise if the chattel has some special meaning or sentimental value to another person and means that the charity still receives a benefit from the intended gift. However, such discussions need to be handled sensitively.

Best practices for charities

To reduce the risk of disputes and ensure smooth receipt of chattel legacies, charities should:

• Encourage donors to describe chattels clearly and specifically in their wills.
• Maintain records of pledged gifts and donor intentions.
• Engage with executors early in the estate administration process.
• Seek legal guidance when dealing with complex or contested items.

By approaching legacy chattels with care, clarity, and sensitivity, charities can honour donor wishes while protecting their long-term interests.