Advantages of Bequests
Simple to UnderstandMost donors do not have to worry about minimum amounts or complex tax rules that apply to life income plan arrangements and outright non-cash gifts.
Lifetime ControlDonors maintain the use of property during life. There is no immediate out-of-pocket cost or disruption of lifestyle, and donors have the final say in the ultimate direction of "social capital" rather than abdicating this responsibility to the state.
RevocableOne of the primary advantages of bequests for a donor is the fact that the bequest is revocable or may be changed as circumstances and personal goals change. This revocability enhances the flexibility of the bequest.
Flexible FormatA bequest is also flexible in that it may be of any amount and may take many forms. Basic forms of bequests are:Outright or qualified partial interest bequests; andSpecific, percentage, contingent or residual.Ease of Implementation
If the prospective donor already has a will, a charitable bequest can be added through a simple codicil (an amendment to a will). If there is no will, an attorney can incorporate the charitable bequest when creating a will.
Memorial and Endowment GiftsPlanning opportunities with bequests include the ability of the donor to restrict the gift for purposes such as a permanent endowment fund or as a memorial gift in honor or memory of a loved one. To be sure that the donor's intentions are realized, the donor should inform the charity about the included bequest.
Establish Life Income Plans or a Lead TrustA bequest from a will or trust may also be used to establish a testamentary charitable remainder trust or testamentary charitable lead trust upon the death of the donor. Pooled income fund bequests may also be funded through a will or trust provision. However, there may reasons to avoid establishing a charitable gift annuity through a will or trust bequest, especially if the annuitant is the surviving spouse, since the unlimited marital deduction is not available for a terminable interest unless rigid requirements are met.
Lifetime ControlDonors maintain the use of property during life. There is no immediate out-of-pocket cost or disruption of lifestyle, and donors have the final say in the ultimate direction of "social capital" rather than abdicating this responsibility to the state.
RevocableOne of the primary advantages of bequests for a donor is the fact that the bequest is revocable or may be changed as circumstances and personal goals change. This revocability enhances the flexibility of the bequest.
Flexible FormatA bequest is also flexible in that it may be of any amount and may take many forms. Basic forms of bequests are:Outright or qualified partial interest bequests; andSpecific, percentage, contingent or residual.Ease of Implementation
If the prospective donor already has a will, a charitable bequest can be added through a simple codicil (an amendment to a will). If there is no will, an attorney can incorporate the charitable bequest when creating a will.
Memorial and Endowment GiftsPlanning opportunities with bequests include the ability of the donor to restrict the gift for purposes such as a permanent endowment fund or as a memorial gift in honor or memory of a loved one. To be sure that the donor's intentions are realized, the donor should inform the charity about the included bequest.
Establish Life Income Plans or a Lead TrustA bequest from a will or trust may also be used to establish a testamentary charitable remainder trust or testamentary charitable lead trust upon the death of the donor. Pooled income fund bequests may also be funded through a will or trust provision. However, there may reasons to avoid establishing a charitable gift annuity through a will or trust bequest, especially if the annuitant is the surviving spouse, since the unlimited marital deduction is not available for a terminable interest unless rigid requirements are met.
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