What is a Specific Gift?
A Specific Gift is a designated item or amount—such as $10,000, a home, or a piece of jewelry—left to a specific person or charity. These are carved out of your estate after debts and taxes are paid, but before the remaining (residual) estate is divided.
Priority Risk: Because specific gifts are paid out first, they can significantly reduce the amount left for your primary beneficiaries. If your specific gifts exceed your total assets, your "residual" beneficiaries may receive nothing.
When are Specific Gifts Distributed?
The timing depends on the type of document you are creating and your family structure.
For Wills and Individual Trusts
Personal Objects: Items like jewelry, cars, or art are always distributed immediately upon your death.
Cash and Real Estate: The timing depends on your "Residual Distribution" choice:
If you chose a Spouse-first option: Specific gifts are only distributed if the spouse has already passed away. Your spouse’s needs take priority while they are living.
If you chose "Children" or "Custom Beneficiaries": Specific gifts are distributed immediately before the rest of the assets pass to those beneficiaries.
For Joint Trusts
Personal Objects: These are distributed immediately upon the first spouse's death. This allows you to pass on family heirlooms without waiting for the second spouse to pass.
Cash and Real Estate: These gifts are generally made only after both spouses have passed away. In a Joint Trust, these gifts typically only trigger if you have included a Marital Trust to restrict the surviving spouse's ability to change the plan, ensuring the gifts are distributed as intended.
Distribution Priority Summary
To help you visualize the flow of assets:
Debts & Taxes: Paid first.
Personal Objects: Distributed (Jewelry, Art, etc.).
Cash & Real Estate Gifts: Distributed (if the spouse is deceased or not the primary beneficiary).
Residual Estate: Whatever is left goes to your primary beneficiaries (Spouse, Children, etc.).
The Wealth.com workflow is designed to handle standard distribution logic. If you need to ensure a cash gift is paid out even while a spouse is still living, or if you have complex gifting requirements:
Recommendation: Consult with an attorney. You can access our Attorney Network for a consultation to inquire about provisions that fit your specific goals.