How to Choose Between Dollar and Percentage Bequests in Your Will
When you create a will, you have a lot of big decisions to make. You want to make sure your family is protected. You also want to support causes that matter to you. But how you write those gifts matters just as much as who receives them. Many families struggle when deciding between dollar and percentage bequests in their estate plans. Choosing the wrong one can cause unintended problems for your loved ones later.
The Problem with Fixed Dollar Gifts
A dollar bequest is a gift of a specific amount of money. For example, you might leave $50,000 to your church or $10,000 to a favorite nephew. This feels simple, but it carries a hidden risk if your estate shrinks over time. Life can change fast. Long-term medical care, a sudden stock market drop, or simply living a long and happy life can decrease the size of your savings.
If your total assets decline, those fixed-dollar gifts remain the same. This means your charitable gifts or extended family members could end up with a much larger share of your wealth than you planned. This leaves less behind for your spouse and children.
Why Percentage Bequests Protect Your Family
A percentage bequest is a gift based on a fraction of your overall estate. Instead of a set dollar amount, you might choose to leave 10% of your remaining assets to your church or alma mater. The great benefit here is flexibility. Percentage gifts automatically adjust to whatever your assets are actually worth when you pass away.
Using percentages keeps your main estate plan goals in proportion. Your immediate family remains protected, and your favorite causes still receive a helpful gift. This balance remains true whether your finances thrive or face unexpected challenges.
Keep Your Estate Plan Balanced
Most people do not plan for their finances to change, but it happens every day. If you are a professional living in Centennial or the surrounding areas, you know how important it is to protect your investments. Whether you enjoy hiking in the mountains or cheering for the Denver Nuggets, you want peace of mind knowing your legacy is safe. Choosing the right path between dollar and percentage bequests ensures your family is always taken care of first.
Let’s Protect Your Legacy Together
Are you ready to build a plan that stands the test of time? We help families secure their futures across the Denver metro area.
Schedule an estate planning consultation → Estate Planning Services with The McKenzie Law Firm, LLC today. Give us a call at 720-821-7604 to start designing a plan that works for your family.
The McKenzie Law Firm, LLC practices law exclusively in Colorado. This post is for general informational purposes only and does not constitute legal advice. Please consult a qualified attorney regarding your specific situation.
