A bequest is a legal term that refers to any gift of personal property, money, or assets made through a last will and testament. It is a fundamental component of estate planning, enabling you to specify precisely who will receive parts of your estate after your death. Your will serves as the primary tool for detailing these gifts, which can range from specific items like heirlooms to money, real estate, or even a percentage of your entire estate.

Understanding Bequests in Estate Planning

Bequests ensure that your assets are distributed according to your wishes. Without a will, state laws of intestacy determine how your estate is divided, which may not align with your desires. A will that includes clear bequests brings order to the distribution process and helps avoid family disputes.

Historical Context

The practice of making bequests dates back to ancient civilizations such as Egypt and Rome, where formal methods of passing on property were used to protect heirs and prevent conflicts. Today’s legal framework has evolved to firmly establish wills and bequests as a way to uphold personal and legal intentions effectively.

How Bequests Work

When you create a will, you specify your bequests—what to give and to whom. After your death, your will is submitted to probate, a court process verifying the will’s legitimacy and overseeing the distribution of your estate.

An executor, designated in your will, manages this process. They gather all assets, settle debts, pay taxes, and distribute your bequests according to the directions set in your will. This role is crucial to ensuring that your estate is handled properly.

Types of Bequests

Bequests come in various forms, each suited for different gifting strategies:

  • Specific Bequest: A defined asset or item given expressly to someone (e.g., “my diamond ring to my daughter”).
  • General Bequest: A sum of money or property given without specifying the exact source (e.g., “$20,000 to my nephew”).
  • Demonstrative Bequest: A monetary gift paid from a specific asset, but if that asset is insufficient, the gift comes from the general estate (e.g., “$5,000 from my brokerage account to my friend”).
  • Residuary Bequest: The remainder of your estate after all other gifts, taxes, and debts are settled (e.g., “the rest of my estate to my university”).
  • Charitable Bequest: Donations left to qualified nonprofit organizations, often offering estate tax benefits.
Bequest Type Description Example
Specific Bequest Clearly identified asset or item “My vintage guitar to my son.”
General Bequest Sum of money or property without a source specification “$10,000 to my cousin.”
Demonstrative Bequest General amount from a designated source “$5,000 from bank account to my niece.”
Residuary Bequest Remaining estate after all other distributions and expenses “The rest to local charity.”
Charitable Bequest Gift to qualified nonprofit organizations “15% of estate to charity.”

Beneficiaries of Bequests

Bequests can benefit various recipients including family members, friends, charities, educational institutions, and trusts for pets. While you cannot directly leave assets to pets, you can set up a pet trust, appointing a trustee and caregiver to manage funds for their care.

Crafting Effective Bequests

For a smooth process and to avoid disputes, consider the following:

  • Clearly describe each bequest with specific details.
  • Regularly update your will to reflect changes in your life or finances.
  • Consult an estate planning attorney or financial advisor to understand tax implications.
  • Designate contingent beneficiaries to cover unexpected situations.
  • Communicate your intentions to loved ones carefully to manage expectations.

Common Mistakes to Avoid

  • Being vague about what you’re leaving and to whom.
  • Ignoring the need for updates as life circumstances change.
  • Overlooking digital assets such as online accounts and cryptocurrencies.
  • Failing to name backup beneficiaries.
  • Attempting to draft complex wills without professional legal assistance.

Tax Considerations

Bequests generally are not taxable income to the recipients in the U.S., but your estate may be subject to federal estate tax if it exceeds $12.92 million in 2025 (adjusted annually for inflation). Charitable bequests may reduce estate tax liabilities. Some states impose inheritance taxes payable by beneficiaries. Consulting a tax professional can provide guidance tailored to your situation.

Frequently Asked Questions

Can I change my bequests after making a will? Yes. You can amend your will anytime while mentally competent, typically using a codicil or by drafting a new will.

What if my estate can’t cover all bequests? This may trigger abatement, where gifts are reduced or eliminated in a priority order starting with specific bequests.

Is a bequest the same as an inheritance? A bequest is a gift made through a will; inheritance is the actual property or assets received.

Are bequests taxable to recipients? Usually not for federal income tax purposes, but estate taxes may apply at the estate level, with possible state inheritance taxes.

For more detailed information, see our Estate Planning and Last Will and Testament articles.

References and Further Reading

This comprehensive overview clarifies the concept of bequests, helping you understand how to leave your assets as you intend and create a lasting impact through your estate plan.