Don’t you want to leave a powerful legacy?
A bequest in your will is one of the most valuable gifts you can make to continue to support the organizations and mission you care about, long after you’re gone. But here’s the thing…
Few people are aware of the necessary steps to legally secure that gift in your estate plan. Without the proper tools in place, your charitable gift may not be distributed the way you want, or even at all.
In this article, I’m going to show you how to protect your charitable bequest so your legacy can live on forever.
Here’s what we’ll cover:
- Why Charitable Bequests Matter
- Understanding The Legal Requirements
- 6x Steps To Secure Your Charitable Bequest
- Common Mistakes That Can Derail Your Charitable Bequest
Why Charitable Bequests Matter
Charitable giving via your will is one of the most significant ways to support the causes you care about.
And here’s a little secret…
Bequest giving totaled almost $46 billion in 2024. That’s a mind-boggling amount of money making a positive impact on communities around the world.
But there’s one big problem. Only 24% of Americans currently have a will in place. That’s 76% of people who have never even taken the first step to securing their legacy or charitable wishes.
If you want to ensure your charitable gifts make it to the organizations you care about, you need to ask: “What is a bequest?” and how to properly include it in your legal will documents. Without proper legal protection in place, your bequest to charity may encounter challenges or even roadblocks that prevent your wishes from coming to fruition.
The good news is that there’s no need to get tangled up in confusion. Setting up a charitable bequest doesn’t have to be complicated when you know the right steps.
Understanding Legal Requirements For Charitable Bequests
Before you can start writing your will, you need to know what legal requirements a charitable bequest needs to meet.
A charitable bequest is a donation made to a nonprofit organization as part of your will or trust. For a bequest to be legally valid, the will must be executed with proper witnessing, signatures, and according to your state’s laws.
If your will isn’t legally valid, your wishes are not going to matter. If the courts become involved, your estate will be distributed in accordance with state law, not how you want it to be.
Step 1: Choose Your Charitable Organizations Carefully
The first step to a secure charitable bequest is choosing the charitable organizations you want to support.
Ensure the charities you select are legitimate, and their values align with your philanthropic vision. To determine if a charity is a good fit, here are a few key points you’ll want to look for.
- Registered 501(c)(3) status.
- Clear mission and goals.
- Financial transparency.
- Track record of impact.
Don’t pick any nonprofit organization that catches your attention. Do your due diligence to make sure they are reputable and can use your gift to further their work and continue their mission for years to come.
Step 2: Decide On The Type Of Bequest
There are a few different options for what type of bequest you want to make as part of your will.
The most common types of bequests are:
- Specific bequest: A fixed dollar amount
- Percentage bequest: A percentage of your estate
- Residual bequest: What is left after all other gifts have been distributed
- Contingent bequest: Only takes effect upon certain conditions being met
Each type has its pros and cons based on your financial situation and giving goals. Percentage bequests are most commonly recommended as they maintain their proportional value even if the total value of your estate increases or decreases over time.
Step 3: Work With An Estate Planning Attorney
Here’s where it gets real…
You need to seek professional assistance from an attorney to ensure your will is drafted properly. An estate planning attorney will ensure your charitable bequest is legally valid and structured in the most tax-efficient manner possible.
Your attorney will help you with:
- Writing clear and unambiguous legal language.
- Including proper legal identification for each organization.
- Structuring your bequests in a way to minimize estate taxes.
- Ensuring your will follows all state-specific legal requirements.
The idea of trying to do this yourself with online templates is scary and risky. Making one minor mistake in the legal language of your will could invalidate your entire bequest or open the door to costly and lengthy legal battles.
Step 4: Use Precise Legal Language
Words matter, my friend.
Your charitable bequest should include specific details in order for it to be legally binding. Precise legal language is essential and you should include the following.
- The full legal name of the organization.
- Tax ID number for the organization.
- Current address of the organization.
For example, let’s say you want to leave a gift to The Humane Society. Instead of writing, “I leave $1000 to my favorite children’s charity” try this:
“I bequeath $1000 to The Humane Society, 501(c)(3) nonprofit organization, Tax ID 12-3456789, 1234 W Main Street, Dallas, TX 75201.”
Simple as that. Including all this information protects your gift and prevents any confusion around who your intended recipient is.
Step 5: Notify The Charitable Organization
Wait, what?
You should actually tell the charity about your bequest. I know, it’s not legally required, but there are several advantages to informing them of your planned gift.
Benefits to notifying the organization include:
- Proper acknowledgement of your generosity
- Review of their legal information so they are accurate in your will
- Discussion on how you want your gift to be used
- Ongoing updates on their work from the organization
By notifying the charity about your planned bequest, you build a relationship with them and ensure they know of your intentions and wishes.
Step 6: Store Your Will Safely And Review Regularly
Now that your will is complete and properly executed with your attorney, it’s time to put it in a safe place.
Tell your executor where your will is located and any other related documents. Most people will keep a copy of their will in a fireproof safe in their home or with their attorney.
But do not leave it at that…
It is highly recommended that you review your will every few years or after a major life change. Organizations may change names, merge with other nonprofits, or even close their doors. Without regular review, your bequest may not reach the place you intended.
Common Mistakes That Can Derail Your Charitable Bequest
Don’t worry if you’re a little lost…
I’m sure there are several mistakes you could make that could complicate or even invalidate your charitable bequest.
The biggest mistakes to look out for include:
- Use of informal or unclear organization names
- Failure to update bequest after charity name changes
- Failure to discuss plans with family members
- Failure to review potential tax implications
The worst mistake of all is not having a will in place. Without your documented wishes, there’s no way for your charitable bequest to be realized.
Wrapping It All Up
Legal protection of your charitable bequest doesn’t have to be confusing or overly difficult.
If you choose your charities thoughtfully, work with an estate planning attorney, use precise legal language, and keep your information up to date, you will have a lasting legacy that supports the work you care about, for years to come.
Don’t forget that there are serious tax advantages for your estate to consider by including a charitable bequest in your will, while also making a significant difference in the world. With the right legal preparation, your generosity can impact generations to come.
Get started now and you’ll have peace of mind knowing your legacy is legally protected and your wishes will be carried out exactly as you intend.
Our dedicated team gathers information from all the reliable sources to make the law accessible and understandable for everyone. We provide the latest legal news stories from across the country, delivered straight to you.