When it comes to estate planning, a bequest agreement can be an important tool in ensuring that your wishes are carried out after you pass away. A bequest agreement, also known as a testamentary gift, is a legal document that outlines how your assets will be distributed upon your death.
There are a few different types of bequests that can be included in a bequest agreement. The most common type is a specific bequest, which involves leaving a specific asset or amount of money to a designated beneficiary. For example, you might leave your antique collection to your niece, or a sum of money to a favorite charity.
Another type of bequest is a general bequest, which involves leaving a certain percentage of your estate or a specific dollar amount to a beneficiary. This can be useful if you want to divide your assets among several beneficiaries, but you don`t want to specify exactly what each person will receive.
Finally, a residual bequest involves leaving the remainder of your estate to a specific beneficiary after all other bequests and debts have been paid. This can be a good option if you want to ensure that a certain person or organization receives as much of your estate as possible.
When creating a bequest agreement, it`s important to work with an experienced estate planning attorney to ensure that all legal requirements are met. Additionally, it`s important to consider the tax implications of your bequests, as some bequests may be subject to estate taxes.
Overall, a bequest agreement can be a valuable tool in ensuring that your assets are distributed according to your wishes after you pass away. By working with an experienced attorney, you can create a bequest agreement that meets your specific needs and ensures that your loved ones are taken care of.