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» Donate » Bequest FAQs
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Bequest by Will FAQs
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| Q: |
How does “bonding” work? |
| A: |
Many states require that estate administrators be bonded to ensure that they handle the estate honestly. It's a form of insurance. The non-refundable premium is paid from the estate. The bond can be waived in a will or trust, leaving more for your loved ones or for charity. |
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| Q: |
Can a will help reduce estate taxes? |
| A: |
Yes, Through a well planned will, you can make a number of provisions that can reduce estate taxes that may otherwise be owed. You may also be able to direct which heirs will be responsible for the payment of taxes if you do not wish for them to be borne equally. Remember that federal and state gift and estate tax law can change over time. Check with your advisors to make certain that your plans are designed to make maximum advantage of opportunities that can help minimize or eliminate estate taxes. |
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| Q: |
What is the “unlimited marital deduction”? |
| A: |
A husband or wife may leave all property to his or her spouse and pay no federal estate taxes on the estate of the first to die. In your will, you can take advantage of the marital deduction and eliminate taxes in this manner. (be sure to talk with your advisors, however, about ways your will and other plans can serve to reduce or eliminate taxes on the estate of the surviving spouse.) |
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| Q: |
Must I get permission from the personal representative before naming him or her in my will? |
| A: |
You should. It's not a legal requirement but is a courtesy. Your assets or the terms of your will may dictate the qualifications necessary for a person to serve as your representative and affect his or her willingness to serve. |
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| Q: |
Should my will direct what compensation my personal representative is to receive for serving? |
| A: |
Fees are generally based on the size of the estate. The probate court will approve the representative's or administrator's fee, so it's not necessary to specify fees in the will. If the personal representative is not a corporate entity but your spouse, a close relative, friend, or beneficiary, he or she may choose to waive such compensation. |
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| Q: |
After agreeing to serve, can a personal representative later refuse? |
| A: |
Yes, and this does occur for reason of ill health, travel, or the press of other business. That's one reason it's wise to name an alternate. |
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| Q: |
What does the personal representative do? |
| A: |
- Obtains the death certificate and provides copies to your insurance company, the Social Security office and others
- Notifies banks where you have accounts or safe deposit boxes
- Arranges for appraisal of your property, if required
- Safeguards your property
- Presents your will to the probate court
- Defends your will if changed
- Locates witnesses to your will, if necessary
- Collects debts due your estate
- Advertises for any just claims against your estate and pays them in order of priority
- Provides interim management for business interests, if necessary
- Collects rents if and when due
- Completes and files state and federal estate and income tax returns, as required by law, in time to avoid penalties
- Defends your estate against improper tax assessments
- Established any trusts created by your will
- Secures any payments due such trusts
- Disposes of your property according to your instructions
- Prepares final accounting and obtains receipts and releases from heirs, if appropriate
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| Q: |
Is my will confidential or can anyone read it? |
| A: |
Your will becomes a public document at death, available to anyone who wishes to see it. |
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| Q: |
How much detail should a will contain regarding the disposition of particular items of property? |
| A: |
Enough to prevent misunderstandings among heirs, but not in such detail that any sale of property before your death would cause confusion. It may be best to treat your property as a whole and divide it by percentages. Of course, your decision will depend on the amount and nature of the assets you are distributing. |
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| Q: |
How far should I go in my will to try to foresee the future? |
| A: |
Think ahead on behalf of your heirs as much as practical. Try to make bequests appropriate to their future needs and family circumstances while leaving them free to use their inheritance as needed. |
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| Q: |
Aren't charitable bequests made mainly by the wealthy or by those with no close relatives? |
| A: |
Not always. Many gifts by will are made by people who first provide for their loved ones and then choose to leave the remainder of their assets to charitable interests that have been an important part of their lives. Even a small portion of a typical estate can be a very meaningful gift when received. |
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| Q: |
How do people usually make such bequests? |
| A: |
Many simply designate a percentage of their estate to go to one or more charitable organizations of their choice. Some name specific property or a specific dollar amount. Still others name one or more charities as final beneficiary(ies) to receive whatever remains in the estate after other heirs are provided for. |
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| Q: |
Is there a limit to how much I can give to charitable interests in my will? |
| A: |
There may be limits in some states. Ask your attorney about local rules. |
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| Q: |
Should I notify a charitable organization that I have included it in my will? |
| A: |
This can be a good idea. It can affect long-range planning, often in vital ways. We are always grateful to learn of a planned bequest and can sometimes assist by providing information about ways to give more effectively and assure that property will be used as intended. |
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| Q: |
Is there any danger that my bequest may not be received as planned? |
| A: |
Yes, that can happen due to using an incorrect or unofficial name in your will, for example, especially since many charities have similar names. Be sure to obtain and use the correct legal name and address. |
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| Q: |
Is it legal for a witness to also be a beneficiary of the will? |
| A: |
Yes, but in some states, such a witness may not receive property left to him or her under the terms of the will unless there are enough other witnesses to prove the will is authentic. |
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| Q: |
Once I have a will, should I ever have to change it? |
| A: |
You should review your will periodically, because even the best wills can become outdated. Adjustments may be called for if your marital status, financial status, or charitable interests change. If you have more children, if your designated personal representatives or guardians can't serve, or if you acquire property in another state, revisions may also be in order. Updating your will may require nothing more than a simple codicil (amendment). |
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| Q: |
Am I required to change my will when moving to another state? |
| A: |
Most states will recognize a will drafted in a state where you previously resided (if the will was properly executed in that state). But it is always a good idea to have your will reviewed by an attorney in the state of your new residence. |
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