Bequest
What Is a Bequest?
A bequest is a gift of money, property, or other assets that is transferred to a person or organization through a will after the death of the asset owner. Bequests are commonly used in estate planning to distribute wealth to heirs, charities, or institutions.
The individual making the bequest is known as the testator, and the recipient is called the beneficiary.
Why It Matters
Bequests allow individuals to control how their assets are distributed after death. They play an important role in estate planning and wealth transfer across generations.
Bequests can also support charitable organizations and philanthropic causes.
How Bequests Work
The process typically involves:
- creating a will that specifies beneficiaries
- naming the assets to be transferred
- appointing an executor to manage the estate
- distributing the assets after probate
Legal procedures ensure that the bequest is carried out according to the will.
Example
An individual leaves a bequest of $50,000 to a university scholarship fund in their will.
Bequest vs Inheritance
- Bequests are gifts specified in a will.
- Inheritance refers to the assets a person receives from a deceased individual, whether through a will or by law.
FAQs About Bequests
Can a bequest include property?
Yes. Bequests may include money, real estate, or personal belongings.
Are bequests taxed?
Tax treatment depends on local laws and estate size.
Can charities receive bequests?
Yes. Many individuals leave charitable bequests.
Related Terms
