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Bequest Language
There are many ways that you can make a gift through your will or living trust. You may find that one of the following arrangements best fits your estate planning goals:
Residuary bequest is stated as a percentage.
Example: ____% of my estate.
Specific bequest is stated as a fixed dollar amount.
Example: the sum of $___________.
It is often simpler to express your bequests as a percentage of your estate. In the event your estate changes in value you may not have to update your will as often. Your gifts remain proportional to your estate.
We suggest the following language for use when your attorney is drafting your will:
I give to the American Civil Liberties Union, Inc. a District of Columbia nonprofit corporation that is recognized as exempt from tax under Section 501(c)(4) of the Internal Revenue Code of 1986, as amended, with its principal offices at 125 Broad Street, New York, New York, [all (or ____ percent) of my residuary estate] or [the sum of $_______ ] to be used for its general purposes.
Please note that such a bequest does not qualify for a Federal estate tax charitable deduction. If you think your estate may be subject to estate tax, you may want to consider language such as the following that will allow you to allocate your gift between the American Civil Liberties Union and the ACLU Foundation (learn more) to minimize estate taxes.
I hereby give, devise and bequeath [DESCRIBE BEQUEST] to the American Civil Liberties Union, Inc., a District of Columbia nonprofit corporation that is recognized as exempt from tax under Section 501(c)(4) of the Internal Revenue Code of 1986, as amended, with its principal offices at 125 Broad Street, New York, New York, 10004, to be used for its general purposes; provided, however, that if said bequest would cause Federal or State estate and/or inheritance tax(es) to be payable by reason of my death, then the above bequest shall be reduced by an amount (the “Reduction Amount”) equal to the minimum amount necessary to eliminate (or reduce to the maximum extent possible) such Federal and State estate and/or inheritance tax(es) that would be payable by reason of my death, and the Reduction Amount shall instead be distributed to the American Civil Liberties Union Foundation, Inc., a New York not-for-profit corporation that is recognized as exempt from tax under Section 501(c)(3) of the Internal Revenue Code of 1986, as amended, with its principal offices at 125 Broad Street, New York, New York, 10004, to be used for its general purposes.
Another alternative is to simply direct your bequest to the ACLU Foundation, gifts to which are fully deductible for purposes of Federal estate tax:
I give to the American Civil Liberties Union Foundation, Inc. a New York not-for-profit corporation that is recognized as exempt from tax under Section 501(c)(3) of the Internal Revenue Code of 1986, as amended, with its principal offices at 125 Broad Street, New York, New York, [all (or ____ percent) of my residuary estate] or [the sum of $_______ ] to be used for its general purposes.
Tax Note: It is worth noting that not every person's estate can take advantage of an estate charitable deduction. Under current tax law, if your estate (including life insurance policies, retirement plans, etc.) is valued less than $5,000,000 (or under $10,000,000 for married couples) you are not subject to federal estate tax.
For more information
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To learn more about other ways to leave a legacy to the ACLU through a planned gift, click here.
Questions? We're here to help. Email us or call toll-free 877-867-1025.
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