Bequest
Definition and meaning of Bequest in real estate.
A bequest is a gift of personal property, such as cash, stocks, or heirlooms, left to a beneficiary through a last will and testament. It is the end result of the act of bequeathing.
In more detail
During the administration of a deceased person's estate, bequests are distributed by the executor after debts and estate taxes are paid. In contrast, a gift of real estate in a will is legally termed a devise. However, modern legal documents sometimes use bequest as a general term for any inheritance.
Real estate transactions involving estates often require checking if there are sufficient assets in the estate to pay all bequests, as real property might need to be sold to cover cash shortages if the estate lacks funds.
Key facts
| Category | Legal, Titles & Closing |
|---|---|
| Applies to | Personal property, investments, and cash |
| Distributed by | The executor of the estate |
| Tax status | Subject to estate tax rules, which vary by value and jurisdiction |
An uncle leaves a cash bequest of ten thousand dollars in his will to his nephew to help him with the down payment on his first home.
Frequently asked questions
What is the difference between a bequest and a legacy?
A bequest refers to any personal property given in a will, while a legacy historically referred specifically to a gift of money, though the terms are used interchangeably today.
Can a bequest be contested?
Yes, heirs can contest a bequest in probate court if they believe the will was signed under duress, during mental incapacity, or was forged.
Related terms
Sources & references
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