What Is a Testamentary Gift?
Quite simply, a testamentary gift is a promise of funds to be made available from your estate upon your death, typically through your estate. However, using your estate as a conduit can lead to a reduction in your intended gift if any of the following are experienced: • A decrease in the fair-market value of your assets before your death; • Unforeseen estate expenses that must be made from your assets; and, • The elimination of your gift if your will is contested. You may be able to protect your gift from estate problems through the establishment of a trust; however, the legal and administrative costs associated with doing so may also have an adverse impact on your gift.
