Pecuniary Bequest

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Pecuniary Bequest

A gift of money in a will, as opposed to some other asset. For example, if a man's will gives his son $100,000 cash, rather than ownership of his home, the man has made a pecuniary bequest.
References in periodicals archive ?
The trust provided for the distribution of the decedent's estate, including the payment of pecuniary bequests to two charities.
However, it must be assumed that the reformation changed the bequests to the charities from pecuniary bequests to residuary bequests, in which case satisfying the bequests would not have resulted in a sale or exchange that would have caused the trust to recognize IRD.
645 election for living trusts if distributions of appreciated assets will be made in satisfaction of pecuniary bequests.
There are special rules for pecuniary (i.e., fixed-dollar) bequests and for residuary generation-skipping bequests payable after other pecuniary bequests are satisfied.
Caution: If a will contains pecuniary bequests to charity and the estate uses IRD items to fulfill them, the IRD will be triggered and taxed to the estate on the date of distribution of the IRD items to the charity.
1.663(c)-4(b) provides a special exception to the separate-share rules generally applicable to pecuniary bequests. If a pecuniary bequest is not entitled to income or to share in appreciation or depreciation and the governing instrument does not provide that it is to be paid or credited in more than three installments, the pecuniary bequest is to be treated as a separate share.
Specific bequests of property do not carry out income and, thus, do not carry out IRD unless the will or other governing instrument directs that specific or pecuniary bequests be funded with IRD items.
However, an IRD item should generally not be used to satisfy a pecuniary bequest, as it will accelerate income recognition by the estate.
On distributions to fund certain types of pecuniary bequests (e.g., to satisfy a "fairly representative" or "minimum worth" formula bequest).
As discussed previously (in Part 13 of this article in February), distributions by an executor to fund a pecuniary bequest and distributions to fund a residuary or fractional bequest when a Sec.
691 income in respect of a decedent (IRD) in satisfaction of a pecuniary bequest will trigger a capital gain or ordinary income to the estate, depending on the type of IRD.(47) Depreciation recaptured under Sec.
If, however, the will provided that the simple pecuniary bequest was to be satisfied in four or more installments, the surviving spouse would be taxed on $80,000 of estate income for 19XX, the estate's distributions deduction (and the surviving spouse's reportable income) would be limited to the estate's $80,000 of DNI.