Make your life’s work count for something! There are several ways you can put the value of your life estate to work for you and make a difference for your community, for humanity, your children and grandchildren. One way is by making a gift through your will. The following reflects some things to know about leaving a bequest through a will.
The formal name for a will is ‘last will and testament’. In the U.S., it is a legal document prepared in consultation with an attorney. The will provides a blueprint for distributing the property and assets of the deceased.
If you own assets and want to make certain these assets go to specific people or institutions at the time of your death, you need a will. People who die without a will – the legal term is ‘dying intestate’ – have their property distributed according to the laws of their state.
Estate planners advise that wills should be looked at every three to five years. Any major change in life circumstances might prompt an update of a will – a death in the family, birth of a child or grandchild, marriage, divorce, retirement, inheritance – anything that might create a significant change in the assets themselves or where they should go at death.
Surveys show that about 40 percent to 50 percent of individuals in the United States have wills and about 10 percent of those who have wills include a charitable bequest.
A gift to a charity made by will is called a ‘charitable bequest’. Charitable bequests to Foundations or Charitable Organizations are given by people who care deeply about the future of their community, society, or the world left for future generations. They want to assure that good and noble works continue to flourish long after they can actively support them. Interestingly, only about one in six people who have made a charitable bequest notify the charity or their friends and family of the future gift, eliminating a valuable opportunity to encourage future generations to become ‘part of the solution’ by investing in the future.
No. There are several ways to make a gift through your will:
General Bequest – A general bequest is the most common type of bequest in which the donor specifies a gift of a certain amount of money. Example: “I give, devise, and bequeath to Mark Twain St. Josephs’ Hospital Foundation, a California, not-for-profit corporation, (Tax ID #____) $10,000, the principal and income of which may be used for such purposes as the Board of Directors may determine.”
Specific Bequest – With a specific bequest, the donor leaves a specific piece of property in an estate. Example: “I give to The Volunteer Center of Calaveras County, a California 501(c)3 not-for profit corporation (Tax ID #_____), all my shares in XYZ Mutual Fund to be used for the general purposes of said charity.”
Residual Bequest – In the case of a residual bequest, the donor leaves all or a portion of whatever is left after all debts, expenses and personal bequests have been paid. Example: “After satisfying all of the above obligations, my Personal Representative shall pay over and distribute the balance of my estate to Calaveras Community Foundation, at _____________ Angels Camp, CA, 95___ as a permanent endowment, the income therefrom to be used in such manner and for such purposes as the Calaveras Community Foundation, in its sole discretion, deems appropriate.”
Contingent Bequest – For a contingent bequest, the donor prepares a plan for making a gift to the Foundation or Charity through a will in the event the primary beneficiary does not survive the donor. Example: “If Donna Donor (primary beneficiary) does not survive me, or shall die during the administration of my estate, within ninety (90) days from the date of my death, or as a result of a common disaster, then I give to the Optimist International Foundation all of the rest, residue, and remainder of my estate, to be used for the general purposes of said charity.”
You will always need to know the legal name of the Foundation or Charity
receiving the bequest.
It is suggested that you include the Tax ID # for the organization and have
the document Notarized. A quick call to your favorite Foundation or Charity
will produce all the information you need.
In the United States, if the Foundation or Charity is a 501(c)3 not-for-profit corporation, the charitable bequest qualifies for a federal income tax deduction for estate distribution.
The inclusion of a charitable bequest in a will requires careful thought and good advice. The information provided herein is intended to get you started thinking about whether you could make a gift through your estate for your favorite Foundation or Charity. However, it is not legal advice. For the specifics that apply to drafting a will in your own state, you will want to see your attorney. You will want to make certain your will is written to reflect your wishes, as well as certifying it will be legal in your own state.
If you would just like to informally bounce around the idea of a bequest to your favorite Foundation or Charity, feel free to contact them, as they would be pleased to assist and partner with you in your mutual efforts to be ‘part of the solution’.
Information contained herein taken in great part from written Optimist International literature, whose noble work we gratefully acknowledge on behalf of children everywhere!