One of the most commonly used methods used to create a legacy gift for a charitable organization is through a bequest, which is a provision in your will that provides for gifts to your favorite causes. There are several types of bequests, and they are described below. Your estate planning attorney can help you in developing the bequest language that accomplishes your goal. Before meeting with your attorney, consider the following:
- What organizations do you want to support with a legacy gift from your estate?
- Are there specific programs or projects in those organizations to which you want to direct your gift?
- Have you spoken to the staff in these organizations about your intended gift? While not mandatory, they can help provide information about where your gift will have the biggest impact. Also, they will want to keep you up to date on the programs that are most dear to you.
General Support Bequests are legacies left to certain people or causes that come from the general value of the estate, and are made by designating a specific dollar amount, a particular asset or a fixed percentage of your estate to the cause of your choice without further restriction as to use.
"I give, devise, and bequeath to Children's Foundation, located in Detroit, Michigan (EIN 32-0087353), the sum of $________(or ______% of my estate or a description of the specific asset), for the benefit of Children's Foundation and its general purposes."
Restricted Gift Bequests are made when a particular item or property is bequeathed for a designated purpose. (i.e., instruments bequeathed to the local school district for use in music education; artwork left to a museum; or funds to be used to maintain gardens at a church.)
"I give, devise, and bequeath to Children's Foundation, located in Detroit, Michigan (EIN 32-0087353), the sum of $_______ (or _____% of my estate or a description of a specific asset), to be used for the following purpose: (state the purpose). If at any time in the judgment of the trustees of Children's Foundation it is impossible or impracticable to carry out exactly the designated purpose, they shall determine an alternative purpose closest to the designated purpose."
Residuary Bequests are made when you intend to leave the residue portion of your assets after bequests and other terms of the will have been satisfied. A Residuary Bequest can be for General Support or a Restricted Gift.
"All the rest, residue, and remainder of my estate, both real and personal, I devise to Children's Foundation, located in Detroit, Michigan (EIN 32-0087353), for its general purposes [or, for the following purpose: (state the purpose)]."
Contingency Bequests allow you to leave a portion of your estate to a particular charity if your named beneficiary does not survive you.
"All the rest, residue and remainder of my estate, both real and personal, I devise to (name of beneficiary), if (she/he) survives me. If (name of beneficiary) does not survive me, I devise and bequeath my residuary estate to Children's Foundation, located in Detroit, Michigan (EIN 32-0087353), for its general purposes [or, for the following purpose: (state the purpose)]."