Bequests 101 - Frequently Asked Questions (FAQ) About Bequests
1. What is a bequest? A bequest is a gift that is given through your will or trust. It is a way to support a cause or organization after your lifetime, and it can be a specific sum of money, a percentage of your estate, or other assets like property or stock.
2. How can I include a bequest in my will? You can include a bequest by working with your attorney to add specific language to your will or trust. The language will outline the amount or type of gift you want to leave, and the organization you want to benefit. Here is an example of bequest language:
“I give to Case Western Reserve University, 10900 Euclid Avenue, Cleveland, Ohio 44106-7090, a Ohio nonprofit corporation, or its successor, Federal Tax Identification Number 34-1018992 [insert here the exact dollar amount].”
3. What types of bequests can I make?
- Specific Bequest: A fixed amount or particular item (e.g., $25,000 or a family heirloom).
- Residuary Bequest: A percentage of the remainder of your estate after other gifts have been made.
- Contingent Bequest: A gift that only takes effect under certain conditions (e.g., if other beneficiaries pass away).
4. Do I need to inform the organization if I include them in my bequest? While it is not required to inform the organization, in this case Case Western Reserve University, letting us know about your intentions allows us to thank you and make sure that any intentions for your gift are properly documented for the future. Many organizations also offer recognition or membership in donor societies for those who include them in their will. Learn more about the Luminary Society.
5. Can I change my bequest after it’s been made? Yes! A bequest can be changed or revoked at any time while you are alive. You can amend your will by creating an addendum or drafting a new will entirely.
6. Will my bequest be taxed? In many cases, charitable bequests are tax-exempt. However, your estate may be subject to estate taxes depending on its size and location. Consulting a tax advisor or estate planning attorney can provide clarity on how your bequest might be impacted by taxes.
7. How can I ensure that my bequest is used according to my wishes? You can specify the purpose of your bequest in your will. For example, you could designate the gift to support a scholarship fund, faculty research, or other initiatives. It’s helpful to work with the organization to ensure they understand and can honor your intentions. At Case Western Reserve University the Office of Strategic Giving will draft a gift agreement with you to memorialize your intentions for your gift. If you’d like to start that conversation we’d be honored to have it!
8. Can I leave a bequest for a cause or project that is important to me? Yes! Many organizations can honor bequests that are designated for specific programs or purposes. For example, you could leave a gift to fund a research project in the School of Medicine or provide scholarships for students in need, or support the faculty initiatives in the humanities, the list goes on!
9. How do I get started with a bequest? You can start by consulting with an estate planning attorney who can guide you through the process. If you wish to include a specific organization, like CWRU, you can contact our office to discuss your options and ensure your gift is properly designated or you can try an online service like FreeWill to draft an initial will. It’s free, simple and secure.
10. What are the benefits of making a bequest?
- Leave a Legacy: A bequest allows you to make a lasting impact on a cause you care about.
- Tax Benefits: Charitable bequests can reduce the size of your taxable estate.
- Flexibility: You can change your bequest at any time, keeping it flexible according to your wishes.
For more information about estate planning or making a planned gift to Case Western Reserve, contact the Office of Strategic Giving at 216.368.440 or visit plannedgiving.case.edu