Many Community Foundation donors have updated their estate plans, leaving bequests to their donor advised or other charitable funds. A “specific bequest” designates a set amount from the donor’s estate or trust, for example:
“I bequeath $15,000 to The Community Foundation (tax ID and/or address), a tax-exempt organization under IRS Section 501(c)(3), to be added to [Name of Your Fund], a component fund, and I direct that this bequest become part of the Fund.”
The Community Foundation is ready to receive such bequests, usually once the estate is settled.
Alternatively, a “residuary bequest” designates a portion of the remaining estate after specific bequests, expenses, and taxes are paid:
“I leave all the rest and residue of my property, both real and personal, to The Community Foundation (tax ID and/or address), to be added to [Name of Your Fund], and I direct that this bequest become part of the Fund.”
The amount of a residuary bequest is determined after settling the estate, and the designated charity (e.g., your fund at the Community Foundation) receives the full amount once the estate is completely settled. Typically, a “partial distribution” is made by the estate’s representative as soon as they have sufficient information about assets and liabilities.
When leaving a residuary bequest to your Community Foundation fund, our team assists at various steps during estate administration. We receive updates on assets, expenses, taxes, and periodic accountings, executing documents like receipts for distributions.
Our team welcomes the opportunity to work with you and your advisors to establish bequests that create a charitable legacy.