SPECIFIC & RESIDUAL BEQUESTS

A "specific bequest" is one whereby the maker of a Last Will gives a beneficiary a specific sum of money, a specific item of property (whether real property--such as land--or personal property--such as an automobile), or a well-defined class or kind of property (i.e., "all stocks that I own" or "my coin collection"). In our Last Will form, it differs from a charitable bequest only by the fact that the bequest is to an individual or institution that is not considered a "charity".

Trusts. If you have purchased our Revocable Trust product, the disposition of what we call "specific bequests" is made in your trust rather than your Last Will. They are termed "specific gifts" in our trust forms and take effect after your death.

"Residual (or remainder) bequest" is the disposition by the maker of a will of all that remains after payment of debts of the estate, administrative expenses of the estate, charitable bequests, disposition of personal effects, and specific bequests. In layman's terms, it is what is leftover after the completion of all other outflows from the estate directed by the will. In our will form (as with most other forms), the residuary either goes to one beneficiary, multiple beneficiaries in equal shares, or multiple beneficiaries in designated percentages (with the total percentages assigned adding up to 100%). It is up to you to choose from these methods.

Community Property. Arizona, California, Idaho, Louisiana, Nevada, New Mexico, Texas, Washington (the State), and Wisconsin are "community property" states. This means, essentially, that all property acquired during marriage by either spouse is treated as owned equally by each spouse. A general exception is property acquired by inheritance or gift during marriage; however, if it is co-mingled with community property by the parties (i.e., deposited in a bank account with the couple's community property funds), it can lose its identity as separate property of the spouse who receive the inheritance or gift and become community property. At death, a married person in a community property state can only pass by Last Will his or her 1/2 interest in their community property. For more information generally, the following is a link to consumer brochure from the Louisiana State Bar Association concerning community property law.