Types of Bequests in a Will: A Comprehensive Guide
Learn about the different types of bequests you can make in a will, including specific bequests, general bequests, and residuary bequests.
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When creating a will, one of the most important decisions you'll make is deciding how to distribute your assets to your loved ones. This process is known as bequeathing, and it's a crucial part of estate planning. In this article, we'll explore the different types of bequests you can make in a will, including specific bequests, general bequests, and residuary bequests.
A specific bequest is a gift of a specific item or property, such as a piece of jewelry, a car, or a house. This type of bequest is often used to pass on items of sentimental value or to ensure that a specific item is inherited by a particular person.
A general bequest is a gift of a specific amount of money or a percentage of your estate. This type of bequest is often used to provide for a specific purpose, such as funding a charity or paying off a debt.
A residuary bequest is a gift of the remaining assets in your estate after all other bequests have been made. This type of bequest is often used to ensure that your loved ones are taken care of, even if your estate is not as large as you thought it would be.
When making a will, it's important to consider the tax implications of your bequests. In the United States, for example, the federal estate tax applies to estates worth more than $11.7 million (in 2021). If your estate is worth more than this amount, you may need to pay taxes on the value of your bequests.
It's also important to consider the legal requirements for making a will. In most states, you must be at least 18 years old and of sound mind to make a will. You must also sign the will in the presence of at least two witnesses, who must also sign the will.
In conclusion, making a will is an important part of estate planning. By understanding the different types of bequests you can make, you can ensure that your loved ones are taken care of and that your assets are distributed according to your wishes. Remember to consider the tax implications of your bequests and to follow the legal requirements for making a will.
