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Bequests in a Will: Definition, Types, Examples, and Benefits

Written by

Annie L.

Reviewed & Facts Checked by: Patience P.
Bequests in a Will: Types, Examples, and Benefits

 

Bequests in a will refer to the act of leaving property or assets to someone through a will. They are one of the most important components in estate planning, allowing individuals to allocate their wealth and belongings to beneficiaries after death. Understanding the types, examples, and benefits of bequests is essential to ensure clarity and effectiveness in estate distribution.

What Does Bequests in a Will Mean?

A bequest in a will refers to a specific provision that allocates personal property, assets, or money to a designated beneficiary after the testator (the person who made the will) passes away. Bequests can include a wide range of items, from cash and property to sentimental possessions. The purpose of a bequest is to ensure that the testator’s wishes are fulfilled, distributing their estate in a way that aligns with their preferences as outlined in the will.

What are the Types of Bequests in a Will?

The six types of bequests are commonly used in wills to distribute assets and ensure clarity in estate planning. Below are the detailed explanations of each type and how they are used:

1. General Bequests

A general bequest is a gift of money or property that comes from the general assets of the estate rather than a specific asset. It does not specify which part of the estate the gift should come from.

Example: A will might state, “I leave $10,000 to my niece.” The executor will ensure that $10,000 is paid to the niece from the estate’s general funds.

2. Specific Bequests

A specific bequest is a gift of a particular item or property. This type of bequest clearly identifies the item or asset that the testator wants to give to a specific person.

Example: “I leave my diamond ring to my daughter, Jane.” In this case, the diamond ring is a specific asset, and it must be given to Jane.

3. Residuary Bequests

A residuary bequest is a gift made from the remaining assets of the estate after all other debts, taxes, and bequests have been fulfilled. It covers everything that remains, known as the residue.

Example: “I leave the rest and residue of my estate to my son, John.” After all specific and general bequests have been distributed, John will receive whatever is left.

4. Demonstrative Bequests

A demonstrative bequest is a gift that comes from a specific source but, if that source is insufficient, the balance will be paid from the general estate.

Example: “I leave $5,000 from my savings account at XYZ Bank to my brother.” If the savings account has less than $5,000, the rest can be paid from other general assets of the estate.

5. Percentage Bequests

A percentage bequest is a gift that assigns a specific percentage of the estate to a beneficiary. This type of bequest allows for flexibility, especially if the estate value fluctuates over time.

Example: “I leave 20% of my estate to my favorite charity.” Regardless of the final value of the estate, the charity will receive 20% of it.

6. Contingent Bequests

A contingent bequest is a gift that only takes effect if certain conditions are met. If the named beneficiary is unable to receive the bequest (e.g., they pass away before the testator), the contingent beneficiary receives it.

Example: “I leave my house to my sister, but if she predeceases me, I leave it to my nephew.”

7. Charitable Bequests

A charitable bequest is a gift made to a nonprofit organization or charity. Many people include these bequests to leave a lasting legacy or support a cause they care about.

Example: “I leave $50,000 to the American Red Cross.” The charity will receive the specified amount to further its mission.

8. Class Bequests

A class bequest is a gift that is made to a group of people rather than individuals. This type of bequest is often used for groups such as children, grandchildren, or siblings.

Example: “I leave my entire stock portfolio to my grandchildren equally.” Each grandchild would share the stock portfolio equally.

9. Conditional Bequests

A conditional bequest is one that depends on a certain event or action taking place for the beneficiary to receive the gift. If the condition is not met, the bequest may not be distributed.

Example: “I leave $10,000 to my niece, provided she graduates from college.” The niece must fulfill the condition of graduating to receive the bequest.

How Do Bequests Work?

Bequests work by allowing individuals to distribute their assets through a will after their death. The process begins when a person (testator) writes a will specifying their bequests. After the testator passes away, the executor of the estate carries out the instructions in the will, ensuring that all assets are distributed to the named beneficiaries. The executor must first settle any debts, taxes, and other obligations of the estate. Once those are paid, the executor distributes the bequests according to the will’s instructions.

For example, if the will specifies a specific bequest of a car to a friend and a general bequest of $10,000 to a charity, the executor will ensure the car goes to the friend and the charity receives the money. In cases of residuary bequests, the executor distributes the remaining assets after all specific and general bequests have been fulfilled. If any contingent bequests are included, the executor must verify whether the conditions have been met before distributing those assets.

How to Write a Bequest in a Will

In order to write a bequest in a will, you need to clearly state your intent, identify the beneficiary, and specify the asset or amount being given. The wording should be precise to avoid any confusion or misinterpretation. It’s important to include details such as the type of bequest (general, specific, residuary, etc.) and the full legal name of the beneficiary. Additionally, mention any conditions, if applicable, especially for contingent bequests.

Here is a simple step-by-step guide:

  1. Identify the type of bequest – Determine if the bequest is general, specific, residuary, percentage, or contingent.
  2. Name the beneficiary – Clearly state the name of the person or organization to whom the bequest is given.
  3. Describe the asset – Be specific about the asset or amount being bequeathed, especially for specific bequests (e.g., property, cash, or valuables).
  4. Include any conditions – For contingent bequests, mention the condition that must be met for the beneficiary to receive the bequest.

Example:

“I leave my antique desk to my brother, Mark Thomas.”

This is a specific bequest that clearly identifies the asset (antique desk) and the beneficiary (Mark Thomas).

For a general bequest, you might write:

“I leave $5,000 to my niece, Sarah Johnson.”

This is a general bequest of money from the estate’s general funds.

What is a Specific Bequest in a Will?

A specific bequest in a will refers to a gift of a particular item or asset to a designated beneficiary. It could include specific objects like jewelry, a car, or a property. Specific bequests are important because they ensure that certain items go to specific individuals as intended by the testator. This type of bequest provides clarity and avoids potential disputes among beneficiaries by clearly outlining the distribution of particular possessions.

How to Make Specific Bequests in a Will

In order to make specific bequests in a will, follow these steps to ensure clarity and avoid confusion:

  1. Identify the asset – Clearly specify the item or asset that you want to bequeath. It could be personal property (e.g., jewelry, a car), real estate, or a specific amount of money from a particular account. Precise descriptions are key.
  2. Name the beneficiary – State the full name of the person or organization that will receive the asset. This prevents any confusion about the intended recipient.
  3. Describe the bequest in detail – Use as much detail as possible to describe the asset. For items such as a piece of jewelry or a work of art, include unique identifiers like serial numbers or specific characteristics to avoid misunderstandings.
  4. Include conditions if necessary – If there are any conditions tied to the bequest (such as the recipient reaching a certain age or achieving a specific goal), be sure to outline them clearly in the will.

Example:

“I leave my 2018 BMW 5 Series, VIN 1234ABC, to my daughter, Emily Brown.”

What is the Difference Between a Specific Bequest vs Pecuniary Bequest?

A specific bequest is a designated item or asset left to a beneficiary, while a pecuniary bequest refers to a specific sum of money. The main difference lies in the nature of the gift—one is a tangible item, and the other is a monetary amount.

How is Order of Bequests in a Will Done?

The order of bequests in a will typically follows a hierarchy to ensure proper distribution. First, specific bequests (designated items or assets) are distributed. Next, general bequests (monetary gifts not tied to a particular asset) are fulfilled. Following that are demonstrative bequests, which come from a specific source, and finally, the residuary bequests are distributed, which cover the remaining estate after all other bequests, debts, and taxes have been addressed. This sequence ensures that all obligations are met before the estate is fully distributed.

What are examples of bequests in a will?

Bequests will refer to specific instructions left by the testator on how they want their assets and belongings distributed after their death. These bequests can vary in form, depending on the testator’s preferences and the type of asset or condition tied to it. Below are common examples of bequests that may appear in a will:

  1. Specific Bequest: A designated item or asset is given to a beneficiary. Example: “I leave my diamond ring to my daughter, Sarah.”
  2. General Bequest: A fixed amount of money given to a beneficiary. Example: “I bequeath $10,000 to my brother, John.”
  3. Residuary Bequest: The remainder of the estate is distributed after all other bequests, debts, and taxes are paid. Example: “I leave the remainder of my estate to my spouse.”
  4. Percentage Bequest: A certain percentage of the estate is left to a beneficiary. Example: “I leave 25% of my estate to my favorite charity.”
  5. Contingent Bequest: Assets are left to a beneficiary only if certain conditions are met. Example: “I leave my vacation home to my niece if she graduates from college.”

What is a Bequeath Form?

A bequeath form is a legal document used to specify the transfer of assets or property from a testator to a beneficiary through a will. It is used when drafting a will to clearly outline what specific assets are being left to which beneficiaries. This form is important because it helps avoid ambiguity, ensuring the testator’s wishes are carried out properly and reducing the likelihood of disputes or legal challenges during the estate distribution process.

Is There a Template for Including Bequests in a Will?

Yes, there are templates available to include bequests in a will. These templates offer structured formats that help testators clearly articulate their intentions for asset distribution, minimizing ambiguity.

How to Word Bequests in a Will

In order to word bequests in a will, it is important to use clear and specific language. Begin by identifying the beneficiary and the specific asset or amount being left to them. Avoid ambiguous terms and ensure that each bequest is straightforward.

Example: “I leave my house located at 456 Oak Street to my son, David.”

For monetary bequests, you can write, “I bequeath $10,000 to my friend, Jane Doe.” Clear wording ensures the executor can easily interpret and fulfill your wishes.

What are the Benefits of Making a Bequest?

The five benefits of making a bequest are:

  1. Ensuring your assets go to the intended beneficiaries.
  2. Providing for loved ones or charitable organizations.
  3. Reducing the potential for disputes among heirs.
  4. Minimizing estate taxes through charitable bequests.
  5. Creating a lasting legacy by contributing to meaningful causes.

What is a Testamentary Bequest, and How is it Included in a Will?

A testamentary bequest is a gift that takes effect upon the testator’s death. It is important because it allows individuals to plan for future asset distribution. It is included in a will by specifying the assets and beneficiaries in the will’s clauses.

What is a Charitable Bequest?

A charitable bequest is a gift left to a charity or nonprofit organization in a will. Charitable bequests are used to support causes that were important to the testator and can provide tax benefits for the estate.

Are Bequests in a Will Taxable?

Yes, bequests can be taxable depending on the type of assets and the location of the estate. The taxation may vary based on estate tax laws and the nature of the bequest.

How Bequests Affect Your Taxes

Bequests can impact beneficiaries’ taxes in several ways, including:

  1. Estate Tax: The estate may owe taxes depending on its overall value. Estates that exceed a specific threshold set by federal or state laws, may be subject to estate taxes before assets are distributed to beneficiaries.
  2. Income Tax: Income-producing assets, such as stocks or rental properties, may generate income that is taxable for beneficiaries.
  3. Inheritance Tax: Some states impose inheritance taxes, meaning beneficiaries may owe taxes on assets received, though this is not a federal tax.
  4. Capital Gains Tax: Beneficiaries may face capital gains taxes when they sell inherited assets, particularly if those assets have appreciated in value. The tax is calculated based on the increase in the asset’s value from the time it was inherited to the time it was sold.

Is a Gift a Bequest?

No, a gift is not the same as a bequest. A gift refers to the transfer of property or assets during the donor’s lifetime, whereas a bequest refers to the transfer of assets through a will after the testator’s death. The key difference is the timing—gifts are given while the person is alive, and bequests take effect only after death. Gifts can also carry different tax implications compared to bequests.

How Do Cash Bequests Work in a Will?

Cash bequests in a will refer to a specific sum of money left to a beneficiary. The executor of the estate ensures that this amount is distributed to the named individual or organization after debts, taxes, and administrative expenses are paid. The funds come from the general estate, or a specific account, depending on the instructions in the will. Example: “I bequeath $5,000 to my friend, John.” Cash bequests provide clear instructions on how money should be distributed among the beneficiaries.

What is a Reversionary Bequest?

A reversionary bequest is a provision in a will where assets are initially given to a primary beneficiary but will revert to a secondary beneficiary if the primary one passes away before the testator. These bequests are used to ensure that the assets remain within the intended circle of beneficiaries. They are important because they provide a backup plan, ensuring that the testator’s property is distributed according to their wishes, even if unforeseen circumstances occur.

What is a Bequest Donation?

A bequest donation is a charitable contribution made through a will, where the testator designates part of their estate to a nonprofit organization or cause after their death. Bequest donations are used to support charitable causes that align with the testator’s values and are important because they offer a way to leave a lasting legacy while potentially reducing estate taxes.

What is the Difference Between Bequest vs Bequeath?

The term “bequest” refers to the actual gift left in a will, while “bequeath” is the act of leaving a gift through a will.

What is the Difference Between a Will and a Bequest?

A will is a legal document that outlines how an individual’s assets should be distributed after their death. A bequest refers to the specific gifts mentioned in the will. An estate bequest refers to the distribution of assets from the overall estate.

What is the Difference Between a Bequest and an Inheritance?

The difference between a bequest and an inheritance lies in how assets are distributed. A bequest refers to a specific gift or asset left to a beneficiary through a will. In contrast, an inheritance encompasses all assets a person receives, either through a will or by intestate succession when there is no will. An intestate estate occurs when someone dies without a valid will, and the assets are distributed according to state laws governing inheritance. Bequests are intentional, while inheritance can occur without a will.

What is the Difference Between a Beneficiary and a Bequest?

The difference between a beneficiary and a bequest is that a beneficiary is a person or entity designated to receive assets or gifts from a will, trust, or insurance policy. A bequest, on the other hand, refers to the actual gift or asset that is left to the beneficiary through a will. In short, the beneficiary is the recipient, while the bequest is the item or property they receive.

What are Pre-Residuary Gifts?

Pre-residuary gifts are bequests made before the distribution of the residuary estate. They are important for ensuring specific assets or amounts are given to beneficiaries before any remaining assets are distributed.

What is an Intestate Bequest, and How Does It Differ From a Regular Bequest?

An intestate bequest occurs when someone dies without a valid will, and their estate is distributed according to state laws governing intestate succession. In this case, the law dictates how assets are divided among surviving family members, often starting with the spouse and children. This differs from a regular bequest, where the testator explicitly names beneficiaries and specifies what they are to receive in a will. An intestate bequest lacks the direct instructions provided in a will and is governed by default legal rules.

 

 

 

Meet the Author

LegalPen Author Anne

Annie L – Distinguished linguist at LegalPen

Annie is a distinguished linguist at LegalPen, bringing a unique blend of legal expertise and linguistic precision to her work. She earned her Juris Doctor degree from Yale University in New Haven, Connecticut, attending on a prestigious Law Faculty Merit Scholarship. At Yale, Annie showcased her exceptional skills by serving as an editor on the Yale Law Review.

Upon graduating, Annie gained invaluable experience through a two-year appellate clerkship at a renowned law firm in Connecticut. During her time in law school, she honed her research and writing abilities as a research assistant and writer for various legal firms. Annie’s deep understanding of legal language and her attention to detail make her an invaluable asset to LegalPen.