Bequests are gifts of cash, property, or other investments designated in a will. They are the most simple and common form of planned giving (more than 80% of planned gifts are bequests). By including a charitable gift in your estate plan, you are given a tax receipt (credit) that can result in a reduction of the income tax payable on your estate. There are three types of bequests to consider:
Residual or proportional. Designating either your entire estate or a percentage of the estate after all other specific bequests are distributed. This means that the amount of your gift will fluctuate and adjusts depending on the size of your estate over the years.
Below are samples of ‘bequest language’ meant to serve as a guide for you and your advisors while drafting or adding a codicil to your estate plans:
General Bequest of a states sum of money may be worded: “I give the sum of $________[inset the exact dollar amount here] to The Foundation for the Victoria Symphony.”
Specific Bequest of a certain asset from your estate may be worded: “I give my [insert description of specific property here] to The Foundation for the Victoria Symphony.”
Residuary Bequest, after other bequests and expenses have been paid, may be worded: “I give all or _____%[insert percentage here] of the residue and remainder of my estate to The Foundation for the Victoria Symphony.”