A bequest is a gift from your estate—a transfer of cash, securities, or other property made through your estate plans. You can make a bequest to the chapter by including language in your will or living trust leaving a portion of your estate to the chapter, or by designating the chapter as a beneficiary of your retirement account or life insurance policy.
Remembering the chapter with a bequest from your estate will help sustain and strengthen the chapter in years to come. Some of the advantages of creating a bequest include:
- A bequest costs nothing now, yet gives you the satisfaction of knowing you have provided for the chapter in the future
- You retain control of and use of your assets during your lifetime
- You may modify your bequest if your circumstances change
- Gifts to the chapter from your estate are exempt from federal estate taxes
- If you let the chapter know of your plans, it will be able to thank you now and recognize you as a member of its Legacy Society.
Making a Bequest
A bequest to the chapter can be made for a specific amount, for a percentage of your estate, or for all or a portion of what is left after you have made bequests to your family. To make a gift to the chapter from your estate, you must sign a new will or living trust instrument, add a codicil to your present will, or make an amendment to your present trust instrument.
Alternatively, you can designate the chapter as a beneficiary of a retirement plan or life insurance policy. To do so, contact the retirement plan administrator or life insurance company and complete the appropriate beneficiary designation form. You can designate a specific purpose for such a gift with a separate letter.
To assist you in preparing your bequest, we have provided sample bequest language.
Planning Your Bequest
When planning for a bequest, you will need to consider how you would like your gift to be used to benefit the chapter—whether unrestricted in purpose or restricted to a specific program or purpose, and whether you would like it to be an expendable fund (to be spent when received) or an endowed fund (to last in perpetuity).
- An unrestricted bequest allows the chapter to determine how to use the funds based on its most pressing needs. Unrestricted bequests are extremely valuable because the chapter can use them to flexibly meet its future needs.
- A restricted bequest directs assets to a specific fund, school, or particular purpose, such as an undergraduate scholarship. The sample language below shows how to word gifts to be restricted to specific programs or for such purposes as undergraduate financial aid. A restricted bequest may be for an expendable or endowed fund.
- Expendable funds are used in their entirety, generally within a relatively short time frame. Some larger expendable gifts are used over longer periods.
- Endowed funds provide income every year in perpetuity to carry out the designated purpose of the fund. Note that endowed funds may have minimum required amounts.
Bequest Language
When making a bequest provision in your will or trust, you should speak with your attorney. We have provided some basic bequest language to assist you and your attorney.
- Specific Bequest
If you are considering making an outright bequest to the chapter, we recommend the following language:
Bequest of a Specific Dollar Amount
I hereby give, devise and bequeath _________ and No/100 dollars ($DOLLARS) to the [chapter], a nonprofit organization located at [address], Federal Tax ID #XX-XXXXXXX, for the chapter’s general use and purpose.
Bequest of Specific Personal Property
I hereby give, devise and bequeath DESCRIPTION OF PROPERTY to the [chapter], a nonprofit organization located at [address], Federal Tax ID #XX-XXXXXXX, for the chapter’s general use and purpose.
Bequest of Specific Real Estate
I hereby give, devise and bequeath all of the right, title and interest in and to the real estate located at ADDRESS OR DESCRIPTION OF PROPERTY to the [chapter], a nonprofit organization located at [address], Federal Tax ID #XX-XXXXXXX, for the chapter’s general use and purpose.
- Percentage Bequest
If you are considering making a bequest of a percentage of your estate to the chapter, we recommend the following language:
I hereby give, devise and bequeath ____ percent (___%) of my total estate, determined as of the date of my death, to the [chapter], a nonprofit organization located at [address], Federal Tax ID #XX-XXXXXXX, for the chapter’s general use and purpose.
- Residual Bequest
I hereby give, devise and bequeath to the [chapter], a nonprofit organization located at [address], Federal Tax ID #XX-XXXXXXX, ALL OR A PERCENTAGE of the rest, residue and remainder of my estate to be used for the chapter’s general use and purpose.
- Contingent Bequest
If (primary beneficiary) does not survive me, then I hereby give, devise and bequeath to the [chapter], a nonprofit organization located at [address], Federal Tax ID #XX-XXXXXXX, DESCRIPTION OF PROPERTY to be used for the chapter’s general use and purpose.
Restricted Bequests
If you are considering a bequest but would like to ensure that your bequest will be used for a specific purpose, please let us know. We would be happy to work with you and your attorney to help you identify ways to give and meet your charitable objectives. We will also work with you and your attorney to craft language to accomplish your goals.
If you are making a restricted bequest, we recommend that your attorney include the following provision to give the chapter flexibility should it no longer be possible for the chapter to use your gift as you originally intended:
If, in the judgment of the Board of Directors of the [chapter], it shall become impossible for the chapter to use this bequest to accomplish the specific purposes of this bequest, the [chapter] may use the income and principal of this gift for such purpose or purposes as the Board determines is most closely related to the restricted purpose of my bequest.
Learn how you can support your chapter by contacting Matt Noble of Fraternity Management Group at matt.noble@fmgtucson.com.