There are a variety of ways to leave gifts in your estate plan, via a Will or a Trust. Finding the best way to leave a gift to a specific person or group of people, depends on the asset, the person receiving the gift, and your goals.
Specific Gifts
When you name a beneficiary for a specific item, it is a specific gift. For example, if you want your son to get your 1969 Camaro and your daughter to get your vacation property in another state, you would specifically state that your son is to receive the Camaro and your daughter is to receive your vacation property. Specific gifts do not have to be single items. For example, you could leave your grandchild the antique dining room set.
Cash Gifts
If you want to leave cash to someone, you can leave a general gift which states a specific value, but does not specify where the money comes from. For example, you could leave a child $5,000 and a grandchild $2,000. The money could come from any asset, including cash in bank accounts, a piece of property, stocks or other assets of your trust or estate.
Demonstrative Gifts
A demonstrative gift does not specific a specific piece or property or amount of cash, but is a gift designated from a source. For example, if you have an antique jewelry collection with several valuable pieces, you could instruct each child to choose one piece from the collection. Because you do not specify which piece goes to which child, this is a demonstrative gift.
Residuary Gifts
A residuary gift is one that leaves the remainder of your estate to a specific person. For example, you might say that any assets left over that have not been bequeathed will be bequeathed to your favorite charity. These are assets that are left after all of the estate expenses have been paid and after all other types of gifts have been accounted for.
When leaving gifts, phrasing is important. At Grissom Law, we help include gifts in your estate plan to assure your property goes specifically to whom you wish, how you wish. We work with our clients to make an estate plan that clearly states your goals. Call us at 678-781-9230.
Disclaimer
This Blog/Web Site is made available for educational purposes only as well as to give you general information and a general understanding of the law, not to provide legal advice. By using this blog site you understand that there is no attorney-client relationship between you and Grissom Law, LLC.