What is a Bequest?
January 4, 2017
What is a Bequest? A bequest is one of the best ways to leave a gift for someone. A Will is an important aspect of a Bequest. Because if you don’t have a Will, you allow the State to decide who gets your assets when you die.
Even if you have a will, you should be reviewing it as life moves on and changes occur. It’s also because a beneficiary’s circumstances can change – they may even have died.
Find a legal professional you can trust to write your will. Even a bank can help you draw the documentation up. They will suggest a list of the things you need to think about before you meet with them.
What is a Bequest? Keeping Up with Changing Circumstances
The person who made your will shall make sure it is worded in such a way that it makes provision for changes in your personal circumstances. These can be marriage, divorce, birth or even a change in your financial circumstances. Your attorney, for instance, will discuss with you the best way for you to provide for your family, friends, and charities.
Depending on the size of your estate, Will drafting can become complicated. An Estate is all that is in your name at the time of your death. It can consist of –
- Your home or land, farms, etc
- savings in your bank accounts
- shares in listed companies
- insurances etc.
Drawing up a Will with a Bequeath can be a do-it-yourself effort. You may use several different types of bequests in your Will, with the general bequest being the most common, directing a set amount of money paid to a particular beneficiary.
Movable Assets or Money
With bequests, you can either bequeath a movable asset such as a motor car, or a fixed sum of money to somebody. The person receiving this bequest is known as the legatee.
In instances where the asset, such as fixed property, has a mortgage bond, you need to specify whether the legatee will have to settle the loan themselves.
What is a Bequest? A Gift for a Charity
During your lifetime you may have supported a particular charity, and you want to bequeath something to this charity. Important information to include is our name, address and registered charity number. In your Will you can give an asset or amount to such an organisation.
Some of the ways that you can give to a charitable cause are –
- Fixed amount – this is the most common type of bequest, but it will require regular reviewing to keep up to date with changing circumstances
- percentage of the Estate – the most flexible way to give the gift changing the size of the Estate
- the residue of the Estate – made up of the balance of the Estate after all other bequests have been fulfilled
So the person or charity who receives a bequest benefits in that they are receiving an estate tax charitable deduction, and you will be leaving them with a lasting legacy. A bequest is one of the easiest gifts to make, and with the help of an attorney, you specify this beautiful gift to be made to a worthy person or cause.
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All info was correct at time of publishing