A bequest is referred to as the gift granted in a will. Different types of gifts can be a part of the will. Usually, these personal gifts are meant for certain people. The first type is general gifting which leaves a particular monetary amount to a beneficiary. Next is the Demonstrative gifts that name the account where the money will come from. Another type is the beneficiaries of residuary bequests which are granted what is left over after all debts are paid, and other gifts are distributed.
If you have been named a beneficiary, you will receive your gift based on one of the ways stated above. Knowing the different types of gifts and how they can be distributed allows you to understand how your loved one wanted to distribute their property.
The first type is a specific gift given to a beneficiary in the will. For instance, a grandfather can write that their car will be granted to their grandson. In this case, the gift is the car, and the beneficiary is the grandson. There are no limitations when it comes to the types of gifts that can be written in a will. However, the item being given away must be legally owned by the owner, so in this case, the creator of the will.
Furthermore, the gift must be described so that everyone can understand it. It may be as broad as possible or as specific as possible regarding the description. But, any financial gifts should be described in enough detail to make the account identifiable without including the account number.
In this era, gifts can also be digital assets. This can consist of online photo galleries, PayPal, or other contents of online accounts. In these cases, it is recommended that the will contain instructions on accessing these various online accounts. Without this knowledge, it would be challenging to prove anything.
The second type of gift is known as a general gift. These are typically monetary gifts that can vary in their amount. Also, the named source for the funds is not specified. For instance, the will can state, “I leave $4,000 to my Nephew, James Franklin,” without indicating which account this money should come from.
Another type is a demonstrative bequest, similar to a general gift in that it also regards a monetary gift. But, in this case, the money source is mentioned. For example, “I leave $4,000 to my nephew, James Franklin, to be taken from my primary checking account.” The only distinction between a demonstrative gift and a general gift is whether the source of the money is named.
The last type of gift is referred to as residuary. This type of gift is when once all the estate’s debts have been paid off and the administration costs have been covered, the remainder is sent to the appropriate beneficiaries.
Residuary beneficiaries will receive everything not named in other gifts, so whatever remains not directly accounted for will be granted to them. It is considered anything that cannot go to a named person in any other way and anything acquired after the will was created. In some states, if one of the beneficiaries of a specific bequest passes away before the testator, that asset or item rolls over to the residuary beneficiaries.
There are other laws specifying what occurs when the beneficiary passes away before the execution of the will. Being aware of what may occur in these situations will be helpful in the future. Complex situations dealing with gifts in a will can arise, and it is crucial to consult a lawyer to know your legal options. Most of these regulations vary depending on your state; therefore, researching your local laws on LegalMatch.com on estate planning will be important.