A donor pledges to a hospital, university, or church, then dies mid-payments. The charity expects the rest. The relatives call it a promise, not a debt. The fight often reaches probate.
Why an Unpaid Pledge Is Not Always a Debt
An unpaid pledge is not automatically an estate debt. In Mount Sinai Hospital of Greater Miami, Inc. v. Jordan, a donor signed two $50,000 hospital pledges, paid $20,000, and died with $80,000 outstanding. The Florida Supreme Court sided with the estate.
The court said a promise of a future gift is not necessarily an enforceable contract. It considered whether the pledges identified specific charitable purposes and whether the hospital substantially relied on them, perhaps by beginning construction for a named project.
Some unpaid pledges can still be enforced. The outcome depends on each pledge’s exact terms and the circumstances under which the donor made the promise.
Probate Deadlines and Payment Priority
Under section 733.702, creditors generally have three months after the notice to creditors is first published to file a claim. Those entitled to individual notice have at least 30 days after service. Section 733.710 generally bars claims two years after death, with exceptions for timely filed unresolved claims and certain lien rights.
Section 733.707 ranks estate debts into priority classes, generally placing an enforceable unsecured pledge in Class 8, behind higher-priority claims. If assets run short, the charity may be paid less, and a personal representative paying an unenforceable pledge risks objections.
Put Your Charitable Intentions in Writing
Clear planning can help avoid disputes. A well-drafted plan can:
- Record each pledge’s organization, amount, payments, and balance
- Direct payment of an identified pledge as a charitable bequest, meaning a gift made through the will
- State whether that bequest satisfies the pledge or adds to it
- Name the charity correctly and note any restrictions on the gift
Section 732.502 sets the execution requirements a Florida will must meet. Separately, 26 CFR § 20.2053-5 may allow an estate tax deduction for a qualifying unpaid pledge, though charitable bequests follow different federal tax rules.
Wickersham & Bowers can review your existing pledges and help draft will language that addresses them. If you are an executor holding a signed pledge card, we can examine its terms and the probate deadlines before payment. To get started, contact us or call 386-252-3000.
