Specificity is Vital in Fulfilling Testamentary Wishes
Editor’s Note: Henri L. Cancio-Fitzgerald, J.D., assistant vice president and planned giving advisor for Wachovia National Center for Planned Giving, contributed to the information in this article.
A bequest in a will is one of the most straightforward gifts a donor can make, but even the simplest intentions can be misinterpreted. The best way to prepare a will is to consult an attorney. Discuss your intentions and request guidance in ensuring that your wishes are fulfilled. Here are some things to consider:
1. Specify whether the bequest includes intangible property.
“Personal property” may be interpreted as tangible personal property only, thwarting the testator’s desire to donate intangible personal property such as stock certificates and travelers’ checks. If you want all tangible and intangible property included in a bequest, state it clearly.
2. Clarify whether your bequest is general or residuary.
A residuary bequest is all or parts of the remainder of an estate after other bequests have been fulfilled. Taxes associated with the estate are generally paid before granting the residuary bequest, reducing the gift amount. A general bequest, on the other hand, can be satisfied from any general assets of the estate. Unless you specify, your wishes are subject to interpretation.
3. Where appropriate, use a savings clause.
A bequest to a university’s Dental Alumni Fund failed because the dental school, which had merged with a medical school, no longer existed when the estate was distributed. No testamentary provisions referred to the medical school. A savings clause would have saved this gift and obviated litigation. An example of a savings clause: “I hereby give, bequeath and devise my stock in BLANK Corporation to the MCG Foundation or its successors in interest.”
4. Ensure that gifts made during one’s lifetime don’t negate bequests in a will.
Ademption occurs when a testamentary bequest is deemed to be satisfied during the donor’s lifetime. Suppose a testator leaves $250,000 to a charity in his will but donates the same amount, or more, in his lifetime. The executor could argue that the bequest was adeemed, negating the obligation in the will. Language in the will can avoid this kind of misunderstanding. For example: “I hereby give, devise and bequeath the sum of $250,000 to the MCG Foundation, exclusive of gifts made to the MCG Foundation during my lifetime.”
Remembering MCG in Your WillMany people have good intentions about creating or updating a will, but often they never quite get around to doing it. Nearly 50 percent of American adults have no will or have an outdated one. A will allows you to recognize people and institutions that have meant the most to you. Without a will, the state can decide who benefits from your life’s work. When creating or updating your will, please consider providing for MCG and its future. A charitable provision in your will is one of the simplest ways to make a future contribution to MCG. Options include:
If you plan to give to MCG through your will, please contact Tony Duva at 800-869-1113 or aduva@mcg.edu. |
Information in this article is not intended as legal advice. For legal advice,
please consult an attorney.
Tax laws are subject to change.