One way to leave a living tribute that reflects the compassion and caring you have shown during your life is through a bequest (a gift you designate in your will) to the American Red Cross of Greater Los Angeles. This may be the most meaningful gift you’ll ever give and countless people will benefit. Through a bequest, you can perpetuate your values and help shape the future of organizations that are important to you. In fact, bequests are the most popular type of planned gifts. Anything you leave to charity will reduce the size of your taxable estate while helping a good cause. A bequest, sometimes called a legacy or a devise, can take many forms:
Specific bequests transfer a particular piece of property.
General bequests transfer a stated sum of money.
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.
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.
Unrestricted bequests allow the beneficiaries to use the assets in whatever way they see fit. These types of bequests are particularly helpful to our work in disaster relief, since they allow us to determine the wisest and most pressing need for the funds at the time we receive them.
Restricted bequests allow you to specify how the funds are to be used.
Endowed bequests allow you to restrict the principal of your gift so that only the investment income generated by the funds can be used. Because the principal is never touched, the fund can last forever.
Honorary or memorial bequests are given to commemorate someone.
The most important 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 professional for help. For more information about bequests, please contact Amy Gross, Planned Giving Officer, at (310) 445-9916.
This information is not intended as legal advice. For legal advice, please consult an attorney.
Tags: bequests, estate planning, trusts, wills
