Donor does not require all of the income, so she purchases a life insurance policy naming daughter as beneficiary. A portion of the income received is tax-free. Reduced capital gains when long-term appreciated property is used to fund annuity. Also reduced estate tax liability. Donor transfers cash or long-term appreciate assets specifying that guaranteed annual income benefits begin on a specific future date.
Many donors establish endowment funds through their estates in honor or in memory of a loved one.
Residue Bequest I give, I devise, and bequeath to the University of North Alabama Foundation of Florence, Alabama, the residue of my estate, including real and personal proprety.