What’s in a name?
“Oh be some other name: What’s in a name? That which we call a rose by any other name would smell as sweet. So Romeo would, were he not Romeo called.”
While Shakespeare’s lament on a name in Romeo and Juliet is beautifully romantic, the sentiment does not bode well for legal documents – particularly in the 21st century when wills and bequests are frequently being challenged in court. For gift planning instruments, such as wills, life insurance policies and beneficiary designation forms, using the correct legal name is vital and can save your executor lots of headaches down the road.
Incorrect naming is one of the most frequent problems encountered by charities when dealing with estates. Many charities have similar names and purposes; some may change their name over time. Therefore, it is crucial to verify the current legal name of your chosen charity before you put it in your will or other planned gift document. If the charity name is wrong or incomplete, your bequest may be challenged by family members or other beneficiaries and can even be denied. This can cause confusion, delays and possibly additional legal fees to your estate. It can also put your executor in a difficult position if he or she is unsure of the intended beneficiary.
Luckily, this problem is easily avoided. In addition to ensuring the charity’s correct legal name is used, you can include the charity’s charitable business number and address on your documents so that your wishes are 100 per cent clear. This information can be found by calling the charity directly, or by checking the charity’s website or the Canadian Revenue Agency’s Charities and Giving webpage. Your lawyer or notary should also have resources to look up this information.
The same advice applies to naming a charity as a beneficiary of your life insurance policy, RRSP/RRIF, tax-free savings account or pension. The more complete the information, the easier it will be to carry out your final philanthropic wishes.
Dale Carnegie had the best counterthought to Shakespeare’s indifference to names when he said: “Names are the sweetest and most important sound in any language.” Using the proper name of your beneficiaries is not just common sense – it can affect your legacy and must be done with care.