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Bequests Allow You to Make Gifts That Cost Nothing Now
Each year thousands of individuals, exercising their privilege to determine the final distribution of their estates, designate that a portion of their assets be used for the benefit and support of charitable organizations. Gifts by will have become an integral part of the American philanthropic tradition because they enable people to make significant contributions that might not have been possible during their lifetimes.
Percentage vs Specific-Dollar-Amount Bequests
Gifts by will can be tailored to meet your own specific personal and financial objectives. For example, you may wish to express your bequest as a percentage of your estate rather than as a specific dollar amount. A percentage bequest is an excellent method of protecting your beneficiaries against a possible reduction in the size of your estate.
Another type of bequest designed to protect your primary beneficiaries is a residual bequest, which is used to give all the "rest, residue, and remainder'' of your property after all debts, taxes, expenses, and all specific bequests have been paid. For example, if you wish to benefit several charitable organizations after your family has been provided for, you could specify that each organization is to receive a certain percentage of your residuary estate.
The right to determine who will receive which assets upon your death is a tremendous advantage from both personal and financial perspectives. True, you will incur some expense in having a will drafted, but the technicalities involved in drafting a will make writing your own inadvisable.
Furthermore, you will need to invest some time to communicate your desires to a competent attorney. But once done, it will be one of the wisest investments you'll ever make and will give you peace of mind. |
