Planned Giving Frequently Asked Questions

1. What is the difference between a bequest and a beneficiary designation?

A bequest is a gift that you make through a will or trust. A beneficiary designation is a gift you make through a contract. Life insurance, investment accounts and retirement plans are examples of assets that pass by contract. If you don’t name a beneficiary of these contracts, then the assets will go to your estate and pass by bequest. 

2. How do I select an executor or personal representative?
 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 so the executor does not need to be an expert in finances, probate law or taxes. A good executor will be honest, organized, and possess good common sense. Most people will name an adult child, another close heir, or a financial advisor. 

3. What are the benefits of a gift of life insurance?
You can make a gift of life insurance by way of paid-up policies whose coverage your family no longer needs. If you donate a policy during your lifetime, you may be eligible to receive an immediate income tax deduction for its current value. Best of all, you can create a gift that will benefit us in the future, at little cost to yourself today.

4. What happens if I don’t have a will?
Unfortunately, this is more common than you realize. If you do not have a will in place, state laws will take over and distribute your estate in accordance to a prescribed formula. Unfortunately, this often is distributed in ways that you would not have chosen. 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 so much to you during your lifetime. A basic will can often be created at minimal cost and is recommended at any age where assets are acquired.