Generally speaking, no one knows when you’ll pass away and leave everything behind. When this happens, you surely want to do something that can have a long-lasting impact on the lives of others. This is where the process of including a bequest in your Will comes into play.
By definition, a bequest is a gift that a deceased person leaves to a specific individual or organization as provided for in their Will. The Will is a legal document stating your wishes after passing away.
A bequest is often called a legacy you can endow upon your death. But, it’s essential to note that adding a bequest in your Will requires some considerations. One of them is identifying the appropriate type of bequests to include in your estate planning document.
In this article, you’ll have a walkthrough of the four tips for using the correct type of bequests in your Will.
- Be Familiar With The Different Types Of Bequest
To utilize the proper type of gifts in your Will, you need to educate yourself on the different types of bequests. These can include:
- Special Bequest: It refers to the transfer of personal property, including shares or stocks, to a designated recipient. For example, if you want to leave your jewelry to your sister, a specific bequest should be made.
- General Bequest: Also known as a pecuniary bequest, a general bequest is the transfer of a general asset to a specific recipient. A typical example is leaving a sum of money to a charitable organization.
- Demonstrative Bequest: It refers to a gift to a recipient taken from the proceeds of a future sale of an item. For example, if you want to leave the sales proceeds of your stocks to your child, a demonstrative bequest in your Will is in order.
- Reversionary Bequest: It refers to a transfer of personal property with the condition that it should be left to someone else if the original recipient predeceases the person who made the Will. A typical example is leaving a house to your sister, but the property will be given to your nephew if she dies before you.
- Residual Bequest: It’s a gift made to a designated recipient after the estate pays all the debts and other bequests are made.
By knowing the various types of bequests, you can figure out how to use one for your Will. However, if you want to understand better how a bequest works, you may consult a lawyer to get more information and apply this legal concept in your Will properly.
- Know Which Causes Or Recipients You Want To Support
You can only utilize the right type of bequests in your estate planning document if you know what kind of legacy you want to leave behind. Maybe you want to transfer a sum of money to a local charity in your area, or you intend to gift your nephew with the proceeds of the sale of your house and lot after your death.
Identifying the causes or recipients you want to support after your passing can help you use the correct type of bequests in your Will. It can ensure that the gift you’ve made in your Will has complied with all the requirements for a particular legacy. Otherwise, it may result in a conflict or dispute in the administration of your estate.
- Take An Inventory Of All Your Assets
It’s essential to do an asset inventory to use the right type of bequests in your Will. By knowing what comprises your estate, you can determine which asset goes to a particular individual or organization after you die.
The assets that can typically be a subject of the different types of bequests include:
- Possessions like vehicles, clothing, and real estate
- Money, including cash and savings or checking accounts
- Antiques, pieces of jewelry, and other collectibles
- Bonds, shares, and stocks
- Work With A Legal Professional
Unless you’re an expert in estate planning and probate, you need to seek legal assistance to ensure that you use the appropriate type of bequests in your Will. Although transferring property as a gift to a specific recipient seems like an easy thing to do, there are things that a legal expert should handle to ensure its success.
Incorporating a bequest in your Will can be a special thing you can do in your lifetime. Besides, it feels good to leave something that belongs to you to an individual or an organization after your passing.
Therefore, if you’ve decided to make specific bequests in your Will, keep the tips mentioned above in mind to make sure you use the proper one for the right person at the right time. By doing so, you can have peace of mind, knowing your Will is prepared according to your express wishes.