A bequest is a gift that you include in your Texas will for a loved one or your favorite charity. Your bequest can be anything you own, whether it’s a property, an investment or a few thousand dollars. In particular, leaving a bequest to charity has several advantages for both you and the organization.
How do you make a bequest?
When you start the estate planning process, you might decide to leave gifts for your friends and family members. You could leave behind properties, investments, cash amounts and other assets. If you have a specific goal in mind, you could even include instructions for how the recipient can use your bequest. An estate planning attorney could help you include bequests in your will.
You might also want to leave a bequest to your favorite charity. Making a charitable donation isn’t just good for the organization–it can also reduce the amount of federal estate tax that is owed. A charitable bequest can also help you preserve your legacy and make a difference in other people’s lives for years to come. If you want to include a bequest in your will, you can easily include it in your documents and update it periodically.
How much can you leave to charity?
Theoretically, you could leave your entire estate to charity. This includes cash amounts as well as investments, houses, vehicles and other properties. However, your executor might have to pay off debts and estate taxes before your estate transfers to the charity.
You could also leave a percentage of your estate to charity, then give the rest to your family members. Your family might be able to take advantage of charitable tax deductions after your death. Charitable bequests are usually easy to manage, so your executor can distribute the assets and handle the rest of the administration that is required.