Through a will or living trust, donors can relay what matters most to them and have their interests put into action upon death. There are two common types of bequests:
Specific Bequest. Donor gives a specific amount or asset such as cash, stock or real estate upon death.
Residuary Bequest. Donor gives all or a portion of his/her remaining estate after estate-related expenses and specific bequests have been paid.
Keep in mind that most people leave an estate when they die. Charitable gifts from these estates, large and small, can be made simply by naming InFaith Community Foundation in their wills and/or living trusts.
How to Make a Bequest to InFaith Community Foundation
- Donor creates a fund online or completes a Fund Workbook. All gifts made to InFaith are placed in the donor's charitable fund to benefit the donor's selected charities over time.
- Once InFaith receives the Fund Workbook, it drafts a document called a Fund Agreement. This document will be sent to the donor for signature and will be countersigned by InFaith. The purpose of this document is to list the charities the donor wishes to benefit and govern the administration of the donor’s charitable fund. The donor may change the charitable beneficiaries at any time by revising the Fund Agreement.
- Donor updates language in will or living trust. Following are sample provisions that a donor may insert in his or her will or living trust (subject to individual attorneys’ styles and state restrictions):
I give, bequeath and devise all of the rest, residue and remainder of my estate to InFaith Community Foundation, a Minnesota nonprofit corporation, for the benefit of the [insert Charitable Fund name].
If the donor wishes to include InFaith’s tax identification number in the documents, it is 41-1802412. Charities the donor recommends to benefit should not be included in the donor’s will or living trust agreement, they are named in the Fund Agreement on file at InFaith.
If specific charities to be benefited through InFaith are listed in the will or living trust, InFaith may not be able to accept the bequest because of limitations imposed upon us as a community foundation, specifically dealing with our variance powers.
- Clients who can’t afford to make a gift now, but wish to benefit charity upon death;
- Clients who wish to benefit charity, but want the option to change their minds down the road;
- Charitably-minded clients who have no heir(s); and
- Clients who wish to benefit a heir(s) with specific gifts, then charity with the remainder of their estates.
Tax and Financial Benefits of Making a Bequest
- The amount bequeathed to charity is given free of federal estate tax;
- Making a bequest costs the donor nothing during lifetime (except legal fees); and
- Having no will (or revocable living trust) may subject the donor’s property to be distributed according to state law without regard for the donor’s needs or intentions.
Benefits to you, the fINANCIAL PROFESSIONAL
Resources to Support Your Work
- Giving Through Beneficiary Proceeds, Wills and Trusts
- Give Now, Give Later, Give & Receive brochure
- Create Your Donor Advised Fund: Fund Workbook
- Request Materials from InFaith