Planned giving through a bequest: Eight ways to make a difference
- Specific bequest - This is a gift of a specific item to a specific beneficiary. For example, “I give my golf clubs to my nephew, John.” If that specific property has been disposed of before death, the bequest fails and no claim can be made to any other property.
- General bequest - This is usually a gift of a stated sum of money. It will not fail; even if there is insufficient cash to meet the bequest, other assets will be sold. For example, “I give $50,000 to my daughter, Mary.”
- Contingent bequest - This is a bequest made on condition that a certain event must occur before distribution to the benficiary. For example, “I give $50,000 to my son, Joe, provided he enrolls in college before age 21.”
- Residuary bequest - This is a gift of all the “rest, residue and remainder” of your estate after all other bequests, debts and taxes have been paid. For example, say your estate is worth $500,000 and you intend to give a child $50,000 by specific bequest and the residuary estate to your spouse. If the debts, taxes and expenses are $100,000, there only would be $350,000 left for the surviving spouse. Most people prefer to divide their estates according to percentages of the residue (rather than specifying dollar amounts), to ensure that beneficiaries receive the proportions they desire.
The previous items can apply in the case of bequests to individual heirs or bequests to charitable organizations like the UNT Foundation. The next items are special considerations when planning a charitable bequest to help support the university’s mission.
- Unrestricted bequest - This is a gift for our general purposes, to be used at the discretion of our governing board. A gift like this - without conditions attached - is frequently the most useful, as it allows the Foundation to determine the wisest and most pressing need for the funds at the time of receipt.
- Restricted bequest - This type of gift allows you to specify how the funds are to be used. It’s best to consult with the Foundation when you make your will, to be certain that your intent can be fulfilled.
- Honorary or memorial bequest - This is a gift given in honor of or in memory of someone.
- Endowed bequest - This bequest allows you to restrict the principal gift, requiring us to hold the fund permanently and use only a small percentage of the dividends generated from investment. Creating an endowment in this manner means that your gift can continue to benefit the university indefinitely.
For more information about bequests, please call the UNT Foundation at (940) 565-4555.
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