Cash gifts to the guardian or executor are common and serve several purposes:
- Why Give a Cash Gift?
- Appreciation: To thank them for taking on important responsibilities.
- Compensation: Guardians may care for minor children, and executors may spend significant time handling estate matters.
- Encouragement: Offering a gift can ensure their willingness to accept the role.
When cash gifts are given to a beneficiary, guardian, or executor, where does the money come from? What happens if the estate is not enough?
After deducting the liabilities, the cash gifts are paid from the remainder of the estate.If the funds in the estate are insufficient, the beneficiaries will receive a reduced amount, likely in proportion to what is available.
Note: Distribution from the non-residuary will have higher priority than the residuary estate.
- How to Give a Cash Gift on GM Legacy?
When appointing a guardian or executor and/or trustee in the will-writing process, you may add the payment frequency and the amount from the options provided.
Make sure the gift is proportionate and doesn't create conflicts among other beneficiaries.
Although optional, these gestures help recognise the effort and commitment required to carry out the testator’s final wishes.