What is a Bequest in a Will?
A bequest in a will is a gift that someone (the person writing the will) leaves to someone else (the beneficiary) after their death.
It can include money, property, personal possessions, or any other asset the person wishes to pass on.
Bequests help people distribute their estate according to their wishes, making sure specific items or amounts go to a particular person or organisation.
Types of Bequests in a Will
There are several types of bequests that can be included in a will, each with a different purpose. Understanding these types can help you decide how best to structure your estate plan.
- Specific Bequest: This is when you leave a particular item or asset to someone. For example, a person might leave a piece of jewellery, a car, or a specific amount of money to a friend or family member. Specific bequests are clear and detailed, so there’s no confusion when the will is carried out.
- General Bequest: This is a gift of a certain amount of money (or a percentage of the estate) to someone, but without specifying which part of the estate should be used. For example, you might leave $10,000 to a charity. This amount will come from the general assets of your estate.
- Demonstrative Bequest: This is a gift of money that’s meant to come from a specific source or account. For instance, you might say, “I want $5,000 to go to my friend from my savings account.” If there’s not enough in that account, the rest can be paid from the general estate.
- Residual Bequest: This is a gift of whatever is left over after all debts, taxes, and other specific gifts have been paid. It’s a way to make sure any remaining assets are distributed according to your wishes.
- Contingent Bequest: This type of bequest depends on a specific condition being met. For example, you might leave a gift to someone only if they reach a certain age or finish school.
Key Takeaway:
Different types of bequests allow for flexibility in estate planning, ensuring that specific wishes are met and that beneficiaries receive the intended gifts.
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Why Include a Bequest in Your Will?
Including bequests in your will allows you to decide exactly how your assets will be shared after you’re gone. You can provide for family and friends, support causes or organizations you care about, or even leave behind a legacy—like funding a scholarship or donating to a charity.
Key Takeaway:
By clearly stating your bequests, you ensure that your wishes are followed, and your estate reflects your values
The Role of Bequests in Charitable Giving
Bequests can also be a powerful way to contribute to charities. If you leave a bequest to a charity or non-profit, you can continue supporting a cause that matters to you even after your death. Charitable bequests can include money, property, or other assets. Many organizations rely on bequests to fund their work, so your gift can make a real difference.
Key Takeaway:
Bequests are an important part of estate planning because they allow you to decide how your assets will be distributed after your death. Whether you’re supporting loved ones, friends, or a cause you believe in, a bequest helps ensure your wishes are carried out and can leave a lasting impact.
