Bequests/Legacies

Bequests and legacies are particular items or sums of money given as gifts upon the death of the donor, to specific people, or organizations.The most common method of deferred charitable giving is a gift through one's will such as cash, securities, real property or personal property .

Bequests can be for general purposes, or they may be designated for some specific area. Care should be taken to include in the wording of the bequest the purpose for which it is intended. Please be as detailed as you can in identifying the gift.

Some types of Bequests/Legacies:

1. General - Goods, or chattels to be left to specific individuals such as "I leave my grandfather's watch to..." These are usually given separately from the residue* of your estate. When leaving sums of money, please check with a financial planner for the best ways to reduce taxes on your gifts so as to leave the beneficiary as much as possible and with as little liability as possible
   
2. Unrestricted - nothing stated as to what should or should not be done with the bequest
3. Endowment - establishes a specific, permanent, fund, i.e., a memorial scholarship to a university or college
4. Specific - usually funds provided for a specific purpose that the donor will state, i.e., the building of a new medical wing
5. Contingent - i.e., should your beneficiaries pre-decease you, you might leave the residue of your estate to a charity
6. Residual* - the residue of your estate can be left to specific beneficiaries (the Residue is everything that remains after any debts, funeral expenses and legacies have been paid).
   
7. Donor - if you are donating any organs or your entire body to science
8. Business - shares in limited companies can be left to beneficiaries

Your bequests or legacies are totally personal to your wishes. Again, the most important thing to do is to make sure that you are very specific when leaving bequests. Fully outline your gifts with explanations, possible whereabouts (if talking personal goods or stocks and bonds) etc. If there are any doubts as to how you should proceed, it is advisable to instruct your executor of your specific wishes and listen to a professional such as an Estate Lawyer or Financial Planner who may think of things that you have forgotten and who can best advise you as to the tax implications of your gifts.

For special worksheets and other online forms that can assist you in preparing your final wishes, please go to:
www.PlanItYourWay.com and register. It is easy and convenient and you will find many useful and free forms to help you organize your important documents.