Making Cash Gifts in Your Will or Trust
When including cash gifts in your will or trust, consider the following steps to ensure clarity and specificity:
- Identify Recipients: Determine who you want to receive cash gifts, whether they are individuals, charities, or other entities.
- Specify Amounts: Clearly state the amount of each cash gift to avoid ambiguity or confusion.
- Survivorship Requirements: Determine whether the intended beneficiary must survive you for a specified period to receive the cash gift.
- Contingencies: Address contingencies if the intended beneficiary does not survive, including alternative recipients or distribution methods.
Specifying Survivorship Requirements
Survivorship requirements stipulate that the intended beneficiary must survive you for a specified period to receive the cash gift. Common survivorship periods include 30, 60, or 90 days from the date of your death. By including survivorship requirements, you ensure that the cash gift passes to beneficiaries who are likely to survive and benefit from the inheritance.
Addressing Contingencies
In the event that the intended beneficiary does not survive, it’s essential to have contingency plans in place to determine who receives the cash gift. Consider the following options:
- Alternate Recipients: Designate alternate beneficiaries to receive the cash gift if the intended beneficiary does not survive. This could be other individuals, charities, or entities specified in your estate planning documents.
- Children of the Intended Beneficiary: If the intended beneficiary has children, you may specify that the cash gift passes to their children (i.e., grandchildren) in the event of the intended beneficiary’s death.
- Charitable Organizations: Alternatively, you may choose to designate a charitable organization as the recipient of the cash gift if the intended beneficiary does not survive.
- Estate of the Intended Beneficiary: If no alternate beneficiaries are designated, the cash gift may pass to the estate of the intended beneficiary and be distributed according to their will or the laws of intestacy.
Ensuring Clarity and Contingencies in Cash Gifts
Making cash gifts in your will or trust requires careful consideration of specificity and contingencies to ensure that your wishes are carried out accurately. By specifying survivorship requirements and addressing contingencies if the intended beneficiary does not survive, you can provide clarity and certainty in the distribution of cash gifts to your chosen recipients. Consulting with an experienced estate planning attorney can help you navigate these complexities and create a comprehensive plan that reflects your wishes and values. With careful planning, you can leave a lasting legacy and provide for your loved ones and charitable causes according to your wishes.
Frequently Asked Questions (FAQ)
Survivorship requirements ensure that the intended beneficiary survives for a specified period to receive the cash gift. This helps avoid complications and ensures that the inheritance benefits those who are likely to survive and benefit from the gift.