The maximum deduction for a charitable bequest of the residu

The maximum deduction for a charitable bequest of the residuary estate is:

Solution

Solution:-

A specific statement in the will of a person that specifies the amount that will be gifted to charity after the death of the will holder (testator) is called as the charitable bequest.

Types of bequest:

Specific bequest: States a certain amount or part of property (as per the will of the testator)to be gifted to someone.

Percentage bequest: Sets the percentage (5%) of the total value of the total property.

Residual bequest: Allows all the property to be gifted after settling any specific bequests and taxes on the property pending.

Residuary estate: it is the part of property that is not devised to anyone in the will. The person who takes such property is called as residuary beneficiary.

In case of all the heirs to a property predecease the testator; the whole property can be transferred to charity.

Thus the maximum deduction for a charitable bequest of residuary estate will be equal to the taxes pending.