Answers to Your Prospects' Questions: Bequests
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- You can make a gift that costs you nothing during your lifetime, and keeps your assets under your control.
- You can change your bequest if your circumstances change.
- Your bequest lets us know that you believe we will be doing good work, far into the future.
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You can give us a specific amount of money or an item of property, or give us a percentage of the balance remaining in your estate after taxes, expenses, and specific bequests have been paid. You can tell us to use your bequest for a particular program or activity here, or allow us to use it for the needs and opportunities that are most relevant to us when your gift is received.
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Some sixty percent of Americans die without a valid will. This is unfortunate in most cases, because state laws will take over and distribute your estate in accordance to a prescribed formula - often in ways that you would not choose. You won't be able to provide extra help to particular family members who may need it, or benefit friends who have been close to you. And, you won't be able to help the charities that have meant much to you during your lifetime.
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The circumstances of our lives change constantly. If you already have a will, here are some everyday events that should nudge you to change it: marriage or re-marriage; divorce or the death of a spouse; a new baby, step children or grandchildren; the death of named heirs; the sale of your house, a family business, or any asset that made up a large part of your estate; adjustments in distributions to your heirs to account for lifetime gifts to some of them, or the anticipated need of others for ongoing care after your death; you wish to add or change a charitable beneficiary.
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Some states allow individuals to compose their own will. If it is properly witnessed and signed, many Probate Courts will accept such a will. However, most people have no idea how to get started with such a task. And will they adequately cover all the bases in a self-authored document? A will is a very important legal document. Therefore, in the vast majority of cases, it is wise to take advantage of the expertise of a qualified attorney. A will is one of the least expensive legal documents, and a well-written document will save your heirs much both in dollars and hassle.
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An executor or personal representative is the person who will manage and distribute your estate in accordance with your will. An executor's work will be monitored by the Probate Court. An executor does not need to be an expert in finances, probate law or taxes (they should hire experts in those fields to assist them). A good executor will be honest, organized and possess good common sense. Your executor should be willing and able to serve in this capacity, too. Most people will name an adult child, another close heir, or a financial advisor. If possible, name someone who lives nearby and who is familiar with your financial matters. That will make it easier to do chores like collecting mail, selling assets and finding important records and papers.
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A revocable trust ("revocable" meaning that its terms can be changed during your lifetime) holds title to your property, then distributes it according to the terms of the trust after your death. The probate court does not review these distributions. In states where probate fees are expensive, a living trust can save costs that a will would incur. Also, if you own property in another state, consider a living trust instead of a will to avoid having to deal with two Probate Courts. However, a revocable trust and a will are both subject to the same amounts of estate and inheritance taxes.
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It's an amendment that makes one or more particular changes to a will, but otherwise leaves the document intact. A codicil thus saves the cost and complication of re-writing an entire will. Download a sample codicil.
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