Glossary term
Bequest
A bequest is property or money left to a person, organization, or trust through a will or estate plan.
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What Is a Bequest?
A bequest is property or money left to a person, organization, or trust through a will or estate plan. The person or organization receiving the bequest is commonly called a beneficiary.
Bequests can be simple, such as a cash gift to a child, or more complex, such as leaving a percentage of an estate to charity, giving a specific asset to one beneficiary, or placing property into a trust under certain conditions.
Key Takeaways
- A bequest is a transfer made through a will or estate plan.
- It can involve cash, personal property, securities, real estate, business interests, or other assets.
- Bequests can be specific, general, residual, or charitable.
- The wording of estate documents and the ownership of assets can affect whether a bequest actually works as intended.
Common Types of Bequests
Type | Basic Meaning | Example |
|---|---|---|
Specific bequest | A named asset or item | Leaving a particular brokerage account, vehicle, or family heirloom |
General bequest | A stated dollar amount or broad gift | Leaving $25,000 to a beneficiary |
Residuary bequest | All or part of what remains after other gifts and expenses | Leaving the rest of the estate to children equally |
Charitable bequest | Gift to a charity or nonprofit | Leaving a percentage of the estate to a qualified charity |
What Can Complicate a Bequest
A bequest only controls property that passes under the relevant estate document. Assets with beneficiary designations, joint ownership with survivorship, payable-on-death registrations, or trust ownership may pass outside the will. That means a will can say one thing while account records send an asset elsewhere.
Estate expenses can also affect bequests. Debts, taxes, administration costs, and asset sales may reduce what beneficiaries receive. If a specific asset is no longer owned at death, the intended bequest may fail unless the estate document provides another result.
Tax and Administration Context
Receiving a bequest is not the same as earning wages, but tax consequences can still arise. Income earned by an estate or trust, retirement account distributions, appreciated assets, estate tax exposure, and state inheritance rules can all change the after-tax result.
Executors and trustees need clear records. The more specific the bequest, the more important it is to identify the asset, beneficiary, conditions, and backup plan if the beneficiary dies first or the asset changes.
The Bottom Line
A bequest is a gift made through an estate plan, usually through a will. It can transfer wealth cleanly when documents, titles, and beneficiary records align, but it can fail or create conflict when the estate plan does not match how the asset is actually owned.