If you’ve ever thought about how you can make a difference after you’re gone, a charitable bequest might be just what you’re looking for.
It’s a simple way to support the causes you care about most, without affecting your finances today. Think of it like this: you’re building a future gift, one that reflects your values and the life you’ve lived.
A bequest is a gift made through your will or estate plan. It can be a specific dollar amount, a percentage of your estate, or even a valuable item like real estate or stock. No matter how big or small, your gift can help a nonprofit organization do more of the work you believe in.
And here’s the best part: it’s flexible. You can change it anytime as life shifts. It’s also a way to keep caring for both your family and your favorite nonprofit, making sure your legacy lives on in the way that feels right to you.
Thinking about your legacy? Harness makes it easy to include a charitable gift in your estate plan. We’re here to help you plan with confidence and heart.
What is a bequest?
A bequest is a gift you leave to someone, or something, through your will. When you hear the word, think of it as a planned way to pass on part of what you own to people or causes that matter to you. For example, you might leave a certain amount of money, a house, or a piece of art to a family member or a nonprofit organization.
There are a few different ways a bequest can be structured. Some people choose to give a specific bequest, like a set dollar amount or a certain asset (say, “$10,000 to X nonprofit”). Others leave a general bequest, which might be a percentage of their estate instead of a fixed amount. Both options work, it just depends on what feels right for your situation.
No matter the form it takes, a bequest is a gift that comes from your estate after you pass away. It’s part of your larger estate plan, which is how your assets get distributed. And while the word itself may sound formal or old-fashioned, what it really comes down to is this: choosing to do something meaningful with what you leave behind.
Why include a bequest in your estate plan
Adding a charitable bequest to your estate plan isn’t just about giving, it’s about staying true to what matters to you. For many people, it's a chance to take care of both their family members and their favorite causes. You don’t have to choose one or the other. You can do both.
Including a nonprofit in your will can be as simple as setting aside a small percentage of your estate or a fixed dollar amount. Even a modest gift can go a long way in helping a nonprofit organization continue its work long after you're gone. It’s a way to keep your values in motion, even when you're no longer here to speak them out loud.
What’s also great is the flexibility. Bequests can be changed or updated anytime. Life happens, and your estate plan should move with it. Whether you're revisiting your will after having kids, changing jobs, or selling a home, it’s easy to adjust your giving plans along the way.
Most of all, including a bequest in your estate plan brings peace of mind. You’re making a thoughtful choice now that will have a lasting impact later, and that’s something to feel really good about.
Types of bequests and how they work
There isn’t just one way to make a bequest. In fact, there are a few different types, and each one gives you a little more control over how your gift is handled. Here they are:
1. General bequest
This is a gift of money from your estate, not tied to any specific asset. It’s a set amount, and it’s paid out from the general value of your estate when the time comes.
2. Specific bequest
This type of bequest names a particular asset, like real estate, stock, or personal property, that you want to pass on to a person or organization.
3. Percentage bequest
Rather than a fixed dollar amount, this option gives a percentage of your total estate. It offers flexibility because the actual amount adjusts with the size of your estate over time.
4. Residuary bequest
After all other gifts, debts, and expenses are handled, whatever is left, called the residue, can be given to a person or nonprofit.
5. Contingent bequest
This is a “just in case” gift. It only takes effect if a certain condition is met, like if another beneficiary isn’t able to receive their gift.
Each type offers a different level of structure and flexibility. The one you choose depends on what you want to give, who you want to give it to, and how you want your estate to be managed.
Choosing what to give: from real estate to retirement accounts
Once you know how you want to give, the next step is deciding what to give. A bequest doesn’t have to be cash. In fact, many people choose to leave assets like real estate, retirement accounts, or other valuable property.
Real estate can be a powerful gift, but it comes with some extra planning. The nonprofit has to be able to accept and manage it, and there may be local rules to follow. It’s worth talking with the organization ahead of time to make sure it’s a good fit.
Retirement accounts, like IRAs or 401(k)s, are also common in planned giving. You can name a nonprofit as a beneficiary on the account, which usually avoids probate and can reduce taxes for your other heirs.
Other options include things like vehicles, life insurance policies, or investment accounts. Some people even choose to give valuable items like art, jewelry, or collectibles. These are considered specific assets, and they can be listed directly in your will or through a separate document.
Whatever you choose, the key is making sure the gift is clearly described and that the nonprofit knows it’s coming. The more specific you are, the easier it will be for your wishes to be honored exactly as you intended.
How charitable bequests can reduce taxes
Giving to charity through your estate doesn’t just feel good, it can also be smart from a financial standpoint. A well-planned bequest might help lower the taxes owed by your estate or your heirs.
Let’s start with estate tax. In some cases, charitable bequests can reduce the overall value of your taxable estate. That means less money may be owed in taxes before your assets are distributed. This is especially useful if your estate is large enough to face federal or state estate taxes.
There can also be benefits when it comes to income taxes. If you leave things like retirement accounts, such as IRAs or 401(k)s, to a nonprofit, those funds usually go straight to the organization tax-free. Your family members wouldn’t have to pay income tax on that money, which they would if the account had gone to them instead.
You might also hear the term tax savings in planned giving conversations. While not every gift leads to a huge tax break, there are often smart ways to structure your bequest to reduce the financial impact on your estate.
Keep in mind, tax laws can change, and they vary by state. That’s why it’s always a good idea to talk with a tax advisor or estate planner. They can help make sure your gift supports the causes you care about and makes the most financial sense.
The legal process: how to include a charitable bequest
Including a bequest in your estate plan might sound complicated, but it’s usually more straightforward than people expect. It all comes down to having clear instructions in your will or trust.
The first step is to decide which nonprofit organization you want to support and what type of bequest you’d like to make, whether it’s a specific dollar amount, a percentage of your estate, or a certain asset. Once you’ve made that choice, the details need to be added to your legal documents.
This is where state law comes into play. Different states have different requirements for what makes a will valid. Some might require witnesses, notarization, or special language. That’s why working with a lawyer is helpful, they’ll make sure everything is done the right way.
It’s also important to keep your plans up to date. If your financial situation changes, or if the organization you want to support changes its name or structure, your will may need to be updated too. Small changes can make a big difference later.
And finally, make sure someone you trust, like your executor or a close family member, knows your wishes. Clear communication now helps avoid confusion or delays down the road.
Using a donor advised fund to streamline charitable bequests
If you're looking for a simple, flexible way to manage your giving, even after you're gone, a donor advised fund(DAF) might be worth considering. It works like a charitable account: you put money into it, get the tax benefits, and recommend how that money should be distributed to nonprofits over time.
Including a donor advised fund in your bequest lets you support multiple causes with just one gift. Instead of naming several nonprofits in your will, you can direct your estate to send one gift to your DAF, and then your fund can distribute the money the way you’ve outlined. It’s especially helpful if your giving goals might change over time, or if you want your family members involved in making future grant decisions.
Another benefit is simplicity. Your executor only has to work with one organization, the DAF provider, which helps reduce paperwork and delays. Plus, donor advised funds are experienced in handling charitable gifts, which makes the process smooth for everyone involved.
If you're someone who wants your giving to grow and continue, even after you're no longer here, combining a bequest with a DAF can be a great way to make that happen.
Charitable bequests
A charitable bequest is more than just a line in your will. It’s a statement of what you care about. It’s a way to make sure your values keep showing up in the world, long after you’re gone.
You don’t need to be wealthy to make an impact. Whether you leave a small dollar amount, a percentage of your estate, or a specific asset, what matters most is that it reflects who you are and what you believe in. Even the simplest gift can help a nonprofit organization continue the work you’ve supported during your life.
And remember, this kind of giving is flexible. You can change it over time. You can plan around your family’s needs. You can even combine different types of gifts to match your vision.
If you're ready to turn your values into action, Harness can help. We make it easy to include a charitable bequest in your estate plan, and we’ll walk with you every step of the way.
