How to Make a Bequest

Creating a Bequest

A bequest or testamentary gift is the simplest way for many donors to make a significant, lasting gift to our community.

When the needs of spouses, children, and other loved ones have been addressed, many people find it satisfying to know that part of their assets will go toward the common good. When you are preparing a will, ask yourself, "Are there any charitable interests I would like to support through my will?"

A testamentary gift can also significantly reduce the federal estate tax due at the donor's death. Many individuals can make significant testamentary gifts at a relatively small cost to their heirs. A testamentary gift to establish a named charitable fund can create a permanent legacy, in the donor's name or in the name of a loved one, that will serve its charitable purpose for generations to come.

You can perpetuate your support for the role your favorite nonprofit plays in the lives of others. It also enables you to make a major gift that might not otherwise be possible. Through a bequest you may leave a specific dollar amount, for example, ($10,000) or may reserve all or a certain percentage of the estate after provisions for family members and other beneficiaries have been made. You may stipulate whether the bequest is for the general support of your selected nonprofit or for a specific purpose. A bequest may also be made in honor or memory of another individual.

Types of Bequests

Residuary Bequest: Utilized if donor wishes to leave remaining property after providing for payment of all debts, taxes, expenses and other bequests.

Percentage Bequest: A donor may designate that the recipient receive a percentage of the residuary estate.

Specific Bequest:: Allows a donor to designate a specific dollar amount or specific item of property including securities, real estate or tangible personal property.

Please note: When making or revising a will, a donor should obtain the assistance of an attorney. We will be pleased to work with you and your attorney to design an estate plan specifically tailored to your wishes.

SAMPLE BEQUEST LANGUAGE

For an outright bequest in will:

§ Specific dollar amount: "I bequeath the sum of $_______ to <ORGANIZATION>, <CITY, STATE, ZIP>, to be used or disposed of as its Board of Directors in its sole discretion deems appropriate."

§ Specific property (personal property): "I bequeath <DESCRIPTION OF PROPERTY> to <ORGANIZATION>, <CITY, STATE ZIP>, to be used or disposed of as its Board of Directors in its sole discretion deems appropriate."

§ Specific property (real estate): "I devise all of my right, title and interest in and to the real estate located at<DESCRIPTION OF PROPERTY> to <ORGANIZATION>, <CITY, STATE, ZIP>, to be used or disposed of as its Board of Directors in its sole discretion deems appropriate."

Share of, or entire residue of estate:

"I devise and bequeath (all/or _____%) of the remainder of my property to<ORGANIZATION>, <CITY, STATE, ZIP>, to be used or disposed of as its Board of Directors in its sole discretion deems appropriate."

Conditional bequest in will:

"If my husband/wife does not survive me, I bequeath the sum of $_______ to the <ORGANIZATION>, <CITY, STATE ZIP> to be used or disposed of as its Board of Directors in its sole discretion deems appropriate."

If the gift to <ORGANIZATION> is for a purpose other than <ORGANIZATION>'s unrestricted use, insert the restriction in place of the words "to be used or disposed of as its Board of Directors in its sole discretion deems appropriate." For example:

"I bequeath the sum of $_______to <ORGANIZATION>, <CITY, STATE ZIP>, for the following use and purpose: <DESCRIPTION OF PURPOSE>."

In the event of a gift a subject to a restriction, you may wish to add one of the following provisions:

"However, I impose no legal or equitable obligation in this regard."

or --

"If in the judgment of the Board of Directors of<ORGANIZATION>, it becomes impossible to accomplish the purposes of this gift, the income or principal may be used for such related purposes and in such manner as determined by its Board of Directors."

These samples are general and may not be applicable to your situation or giving intent. It is always best to consult an attorney or financial advisor before deciding on the form and content of any bequest you may wish to make.

info@lastinggift.org

Updated May 26, 2005

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