What is a bequest?
A bequest is the most frequently utilized planned giving method in the United States. Simply stated, a charitable bequest provides for a distribution of cash or property to charity upon a donor's passing. The charitable bequest provision is usually contained in or can be easily added to a donor's will or revocable living trust.
The three most common types of bequests are as follows:
•Specific dollar amount, e.g. $10,000,
•Specific asset, e.g. my Picasso painting, or
•A percentage of the estate, e.g. 10% of my residue estate.
Planned giving frequently involves a combination of bequests types.
Donors might also want to consider a contingent charitable bequest. A contingent charitable bequest takes effect only if the primary beneficiary is no longer living upon the donor's death. For example, a donor may stipulate that 10% of his estate goes to a sibling. However, if the donor's sibling is deceased at the time of his death, then 10% goes to the AMA Foundation.
Example of a Bequest
John Smith has an estate of $2 million, and he has been an AMA member since childhood. At his death, John wants to give one-tenth or 10% of his estate to the AMA Foundation. In particular, John wishes to create an endowed scholarship in the name of his father, also a modeler.
What is a simple way that John can accomplish his philanthropic goals?
John can include a charitable bequest in his will or revocable living trust to accomplish his giving goals. For instance, John's attorney could include a specific $300,000 charitable bequest provision in John's will. By doing so, the AMA Foundation will receive $300,000 from John's estate and, accordingly, John's dream of establishing an endowed scholarship in his father's name can be realized.
John's estate will also enjoy some estate tax savings. Because of the charitable bequest provision, John's estate will be entitled to a $300,000 charitable estate tax deduction. This deduction may save a significant amount in estate tax.
Not only can this save money and honor his father, but John can be assured that his gift will benefit young modelers.
Click here to learn more about the AMA Scholarship Program.
Leave a Bequest:
Using Free Will, our official online free will creater and partner, leave the AMA Foundation a bequest by visiting our website.
If you've already created your will and have designated a bequest to us, let us know by visiting our website.
There are many options for donors interested in giving to the AMA Foundation. Please email firstname.lastname@example.org or contact Stephen Haston at (765) 287-1256, ext. 279 for more information.