What Is A Bequest?
Bequests are the actual gift disbursals that result, upon
one's passing, from a specifically worded commitment in a will or
trust agreement. Bequests are unlike any other gifts we receive because
they represent individuals' final statements about what is most important
to them. Every bequest is a powerful expression of loyalty, good will,
and faith in the future of us and our mission. 
I'm Not Wealthy, Can My Bequest
Still Make A Difference? You do not have to be wealthy to
create a legacy. A bequest of any size can be significant in helping
to preserve our mission and our reach.
I have a will. Do I need anything
else? In addition to a will, most experts recommend that you
have a durable power of attorney, which allows another person to act
on your behalf should you become incapacitated. Also, a living will
is helpful to your heirs in that it directs at which point you do
not want your life artificially supported.
Can bequests be handled in a
living trust? Certainly. You may wish to consider a living
trust as an estate planning tool. More
information is available. Living trusts may be either revocable
or irrevocable and there are advantages and disadvantages to consider
in both.
What
happens to my personal possessions? Personal possessions are
best distributed through a tangible personal property memo in which
you list the personal items you wish to give to specific people. Your
will must mention the existence of this memo and you should keep a
copy of it with your will.
If a trust agreement is established
as irrevocable, it means that it can't be revoked (broken) except
under unusual circumstances. Why would anyone want an irrevocable
trust? There are always specific reasons for making an irrevocable
trust agreement. Perhaps it involves a family business where some
of the family members are getting on in years and the family wants
to make certain that management continues to run smoothly even if
hindrances, such as senility, enter the picture.
Many times the reasons for an irrevocable trust involve estate
and/or income tax avoidance. In order to be successful in such avoidance,
the trustor must not have any direct or indirect power or control
over the trust property or income. The regulations on this subject,
set out in the Internal Revenue Code, must be carefully followed.
What is the difference between
a charitable remainder unitrust and a charitable remainder annuity
trust? The major difference is in the valuation of the assets
of the trust, which establishes part of the calculation for the determination
of the amount of income received by the income beneficiary(-ies).
The annuity assets are valued at the time the assets are placed in
the trust and are never revalued. Annual payments remain the same,
whether the assets appreciate (increase in value) or decline (lose
value).
The assets in the unitrust are revalued annually. If the trust
assets appreciate, the payment to the income beneficiary(-ies) will
increase. If the trust assets depreciate, the payment will decrease.
What happens to my assets in
a trust for a charity if the charity goes out of business before the
expiration of the trust? Your trustee is authorized to name
a substitute, if that is the sole charity.
Should I name a charity as trustee
of my charitable remainder trust? This is often done if the
organization is qualified to so act under local law. The organization's
representatives can satisfy you in that regard. Often they will serve
without fee, which is an additional incentive.
How often should I update my
will or trust? These documents should be updated any time
your financial or your family circumstances change. As laws vary from
state to state, if you move you should have an attorney licensed in
and familiar with the new state's laws review your will or trust agreement.
It is always wise, even if there are not any significant changes in
your circumstances, to periodically review these important documents.
A good rule of thumb is to review your will every three years.
Can I use my insurance to benefit
charitable organizations? Yes. This is an area overlooked
by many. You can name one or more charities as alternate or as primary
beneficiary. Furthermore, if you no longer need the policy proceeds
in your estate for use now, you can transfer ownership of the policy
to the charity or charities. If
the policy has cash loan value, the charity can draw this out and
use it. In this case, you not only receive a charitable gift deduction,
but any additional premiums you pay are tax deductible for you now.
And, on your death, the charity receives the balance of the policy
proceeds and none of it is included in your estate for tax purposes.
