The Gift You Leave Behind

8 ways to create a legacy

Of all the gifts you've given, a bequest (a gift you designate in your will) may be the most meaningful one you'll ever make. Through a bequest, you can remember loved ones in special ways, perpetuate your values and help shape the future of your favorite charitable organizations. Many people find security in retaining control over their assets until their deaths. Gifts that you may be reluctant to make today become feasible when provided for by your will. What's more, bequests avoid federal estate taxes, which can devour up to 46 percent of your total estate.

Let Me Count the Ways
A bequest, sometimes called a legacy or a devise, can take many forms:

1. Specific bequests transfer a particular piece of property. If the specific property was disposed of before your death, however, no claim can be made to any other property. For example, if you bequeath your 1965 Mustang to your grandson, but end up donating the car to a charity auction, your grandson can't make claim on your 2006 Lexus instead.

2. General bequests transfer a stated sum of money. If there's insufficient cash in your estate to cover the bequest, other assets must be sold for cash to pay the stated amount.

3. Contingent bequests require a certain event to occur before distribution. You could bequeath funds to an individual (such as a spouse) provided he or she survives you; if not, the funds would then go to the next beneficiary you name. Many people use contingent bequests to benefit charitable nonprofits, once primary family members have been considered.

4. Residuary bequests transfer the "rest, residue and remainder" of your estate, or a percentage of the residue, after all other bequests, debts and taxes have been paid.

5. Unrestricted bequests allow the beneficiaries to use the assets in whatever way they see fit. These types of bequests are particularly helpful since they allow us to determine the wisest and most pressing need for the funds at the time we receive them.

6. Restricted bequests allow you to specify how the funds are to be used. If you have a special purpose or project in mind, it's best to consult us when you make your will to be certain your intent can be carried out.

7. Endowed bequests are managed to provide reliable ongoing program support, coupled with growth designed to maintain the real value of your gift for future generations at your favorite charitable organizations.

8. Honorary or memorial bequests are given to commemorate someone. The honoree might be named in a program or report or even on a room or a building. Grants, scholarships and prizes in your name or that of a family member are other common memorial gifts.

Sample Language
The first step toward leaving your legacy is to make sure you have an up-to-date will and estate plan. Be sure to consult a qualified estate planning attorney for help.

The official bequest language for your favorite charitable organizations is: "I, [name], of [city, state, ZIP], give, devise and bequeath to [your favorite charitable organization] [written amount or percentage of the estate or description of property] for its unrestricted use and purpose."

Let Us Know
Please let us know when you have named your favorite charitable organizations in your will, so we can thank you. While public recognition of your gift often inspires generosity in others, we also understand that anonymity may be your preference.

Please contact Mary Ludwig, Development Director at 712-732-5127, for more information.



The information on this site is not intended as legal, tax or investment advice. For such advice, please consult an attorney, tax professional or investment professional.

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