To ensure that your exact intentions are carried out, estate planning documents should be prepared by or with the advice of your attorney and specific gift designations or restrictions discussed with the Development Office at the museum. A residual bequest is a gift of all or part of the property remaining in your estate after debts, expenses, and specific bequests have been paid. The museum encourages gifts by residual bequest . As your gift is stated as a percentage, this method automatically adjusts the size of your bequest according to your current financial position. This gives you flexibility and the peace of mind that your bequest will not be larger or smaller than you had intended relative to your overall estate, in event of unexpected changes in the size of your estate.
Residual bequests are also beneficial for the museum.
A specific bequest is a gift of a particular dollar amount or a particular piece of property. A contingent bequest is a gift which takes effect only if the primary beneficiary or beneficiaries of the bequest should predecease you. If you are planning on including the museum in your estate plans, another effective asset to consider is the remainder of your retirement plans such as pension funds or IRAs. If left to the museum these funds would escape both income and estate taxes, and reduce your taxable estate. An unrestricted bequest is the simplest and most common kind of bequest.