For the treasurer who just received a check from a law firm
Bequest acknowledgment letters: the receipt the executor needs, and the thank-you the family deserves
A bequest is the one gift where the donor cannot read your letter. The executor or trustee needs a clean receipt for the estate's accounting — amount, date, estate name, your EIN, "no goods or services" — and the family deserves a separate, warm note with no tax language in it. The living-donor acknowledgment rules (IRC §170(f)(8)) do not apply; the estate deducts the gift under §2055 or §642(c), and with the 2026 federal exclusion at $15 million most estates will not file a return at all. Four templates below: the per-distribution receipt to the executor, the final-distribution letter that handles the Receipt, Release and Refunding Agreement, the beneficiary-designation letter for IRA and life-insurance gifts, and the condolence-and-thanks letter to the family.
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Who gets which letter
| How the gift arrived | Who needs paper | What you send |
|---|---|---|
| Check from the estate — specific bequest or partial residuary distribution | Executor / personal representative (and the probate file) | Receipt to the executor (template 1), one per distribution |
| Final distribution with a Receipt, Release and Refunding Agreement | Executor; your board | Reconciling letter + signed release after review (template 2) |
| Distribution from a revocable living trust after death | Successor trustee | Template 1 with "Trustee" and "Trust" substituted |
| IRA, 401(k), life insurance, POD/TOD account — paid by the custodian | Custodian (claim form); family for the record | Beneficiary-designation letter (template 3) |
| Charitable remainder trust or gift annuity remainder | Trustee; your finance committee | Receipt to the trustee; no deduction arises now (the donor took it when the trust was funded) |
| Any of the above | The family | Condolence-and-thanks letter, no tax language (template 4) |
| Memorial gifts from friends "in memory of" the decedent | Each living donor | Ordinary acknowledgment — see the Memorial page; these are not bequests |
Receipt to the executor or personal representative
One per distribution. Names the estate and the Will article or trust, states the amount, date and form of payment, confirms no goods or services to the estate or any beneficiary, cites Section 2055 and your 501(c)(3) status, restates any restriction, and offers to thank the family.
[Organization letterhead — name, address, EIN] [Date] [Executor / Personal Representative name] [Law firm or address] Re: Estate of [Decedent's full name] — [bequest under Article [X] of the Will / distribution from the [Name] Revocable Trust] Dear [Mr./Ms. Last name], On [date received], [Organization name] received $[amount] [by check no. [0000] / by wire] from the Estate of [Decedent's full name], representing [a partial distribution / the specific bequest of $[amount] / [X]% of the residuary estate] under [his/her] Will dated [date]. This letter is our receipt for the estate's records. No goods or services were provided by [Organization name] to the estate, to [Decedent's first name], or to any beneficiary in exchange for this distribution. [Organization name] is a tax-exempt organization described in Section 501(c)(3) and Section 170(c) of the Internal Revenue Code, EIN [00-0000000], and contributions to it are eligible for the estate-tax charitable deduction under Section 2055. A copy of our IRS determination letter is enclosed [or: available on request]. [If restricted: In accordance with the Will, this gift will be used for [purpose stated in the Will]. / If unrestricted: The Will places no restriction on the gift, and our board will direct it to [purpose].] We are honored that [Decedent's first name] remembered [Organization name] in [his/her] estate plan, and we extend our sympathy to [his/her] family. If the family would welcome it, we would be glad to send them a note of thanks; please let us know whom to contact. Sincerely, [Signer name] [Title] [Organization name]
Final distribution and the Receipt, Release and Refunding Agreement
Reconciles every distribution against the final accounting, returns the signed release with the three protective changes most counsel recommend (refund capped at the amount received, proportionate share only, no waiver of amounts still due), or asks for the accounting first.
[Organization letterhead — name, address, EIN] [Date] [Executor / Personal Representative name] [Address] Re: Estate of [Decedent's full name] — final distribution and your Receipt, Release and Refunding Agreement Dear [Mr./Ms. Last name], Thank you for the final distribution of $[amount], received on [date]. Together with the earlier distributions of $[amount] on [date] and $[amount] on [date], [Organization name] has received a total of $[total] from the Estate of [Decedent's full name], which agrees with the [X]% residuary share shown in your final accounting dated [date]. No goods or services were provided in exchange for any of these distributions. [Organization name] is a tax-exempt organization described in Section 501(c)(3) of the Internal Revenue Code, EIN [00-0000000]. Please keep this letter with the estate's records. We have signed and enclosed the Receipt, Release and Refunding Agreement [with the following changes, initialed: our refund obligation is limited to the amount we actually received and to our proportionate share of any properly allowed claim or expense, and the release does not waive our right to any further distribution to which the estate's accounting shows we are entitled]. [If the estate did not provide an accounting: Before we sign the release, please send the final accounting (or informal summary of receipts, disbursements and distributions) so that our board can confirm the share; we will return the signed release promptly after.] It has been a privilege to work with you on [Decedent's first name]'s wishes. [His/Her] legacy will [one sentence on what the gift makes possible]. Sincerely, [Signer name] [Title]
Beneficiary-designation gift (IRA, 401(k), life insurance, POD/TOD)
For money the custodian paid you directly. Explains that the gift passed outside the Will, records amount and date for the estate's file, notes that retirement proceeds are income-tax-free in a charity's hands, and asks the family about recognition or anonymity.
[Organization letterhead — name, address, EIN] [Date] [Family member or personal representative name] [Address] Dear [First name], We were saddened to learn of [Decedent's full name]'s passing, and we are deeply grateful that [he/she] named [Organization name] as a beneficiary of [his/her] [IRA at [Custodian] / 401(k) plan / life insurance policy with [Insurer] / [Bank] payable-on-death account]. On [date], we received $[amount] directly from [Custodian/Insurer] under that designation. Because this gift passed to us by beneficiary designation rather than through the Will, no action by the estate was required, and no goods or services were provided in exchange. For the estate's records: [Organization name] is a tax-exempt organization described in Section 501(c)(3) of the Internal Revenue Code, EIN [00-0000000]; amounts passing to a qualified charity at death are eligible for the estate-tax charitable deduction, and retirement-account proceeds paid to a charity are not subject to income tax in anyone's hands. The custodian will report the payment to us, not to the family. [Decedent's first name]'s gift will [one or two sentences on the use — e.g., fund the spay-neuter clinic for the next two years]. If the family would like us to recognize [him/her] in our annual report, or would prefer that the gift remain anonymous, please tell us. With our sympathy and thanks, [Signer name] [Title] [Organization name]
Condolence and thanks to the family
No EIN, no Section numbers, no 'tax-deductible'. Says who the person was to you, what the gift will do, asks permission before listing the name, and mentions that the formal receipt went to the estate's representative.
[Organization letterhead] [Date] [Family member name] [Address] Dear [First name], I am writing on behalf of everyone at [Organization name] to tell you how much [Decedent's full name]'s gift means to us, and to say how sorry we are for your loss. [Decedent's first name] [one or two specific sentences — how long they were connected to the organization, what they volunteered for, what they cared about]. [His/Her] bequest of [description — "$25,000" or "a share of the estate", or omit the figure if the family might prefer that] will [concrete use — e.g., keep the food pantry open on Saturdays for the next three years / endow the summer reading program]. With your permission we would like to list [Decedent's first name]'s name among our legacy donors in the annual report and on the memorial wall. If you would rather the gift stay private, just let us know — either choice is completely fine. You are also welcome to visit any time; we would be glad to show you what [his/her] generosity is doing. The estate's representative has received our formal receipt separately; this letter is simply our thanks to you. With sympathy and gratitude, [Signer name] [Title] [Organization name]
Estate rows in the generator
Name the donor "Estate of Jane Doe" (or mention the bequest, executor, Will, beneficiary designation or trust termination in Notes) and the generator addresses the letter to the Personal Representative of the estate, adds a paragraph that names the decedent, confirms the receipt for the estate's records and extends sympathy, swaps "your tax records" for "the estate's records", and leaves you a note to hard-credit the decedent and read any release before signing. Memorial gifts from living donors and gifts from a living family trust are not treated as bequests. Several partial distributions from the same estate can go on one year-end letter.
Bequest questions
Does an estate need a donation acknowledgment the way a living donor does?
Not the same one. The contemporaneous written acknowledgment rule in IRC §170(f)(8) belongs to the income-tax deduction a living donor claims. A bequest is deducted by the estate under §2055 on Form 706, Schedule O (or by an estate or trust under §642(c) on Form 1041), and those rules do not require a §170(f)(8) letter. What the executor does need is proof of what was paid to whom and when — for the estate's accounting, the probate court, the residuary beneficiaries and, if one is filed, Form 706. So send a receipt on letterhead that states the amount, the date, the estate it came from, your EIN and 501(c)(3) status, and that no goods or services were provided. Template 1 does that.
Who is the donor — the deceased person or the executor?
The decedent. The executor or personal representative is a fiduciary carrying out the Will, and the trustee of a revocable trust is in the same position. In your database, hard-credit the gift to the decedent's record (marked deceased, with no further mail), soft-credit the executor or the law firm so you can find the correspondence, and record the family contact for stewardship. Never describe the gift as tax-deductible "to you" in a letter to the executor: no individual deducts a bequest.
Will the estate file an estate tax return at all?
Usually not. For a person dying in 2026 the federal basic exclusion amount is $15,000,000 (IRC §2010(c)(3) as amended in 2025, indexed from 2027), so the great majority of estates owe no federal estate tax and file Form 706 only to elect portability for a surviving spouse. About a dozen states have their own estate or inheritance tax with lower thresholds, and charitable bequests are deductible there too. Either way your receipt is useful: it proves the distribution for the accounting and it is the document the executor attaches if a return is filed.
We were named beneficiary of an IRA or life insurance policy. What do we send, and to whom?
The custodian or insurer pays you directly on the beneficiary claim form; the Will and the executor are not involved. Retirement-account proceeds are income in respect of a decedent (§691) that would be taxed to an individual heir, but a charity pays no income tax on them — which is why advisors recommend naming charities on retirement accounts. Send the custodian whatever receipt it asks for, and send the family or personal representative a letter like template 3 that states the amount, the date, your EIN and the no-goods statement, so the estate's records are complete and the family knows the gift arrived. The amount is still part of the gross estate and deductible under §2055 if a return is filed.
The executor sent a "Receipt, Release and Refunding Agreement" to sign. Should we?
Read it first. These agreements are routine — you acknowledge receipt, release the executor from further liability for your share, and agree to refund money if the estate later owes a properly allowed debt or tax. Before a board officer signs, check three things: the amount matches what you actually received; the refund obligation is limited to the amount you received and to your proportionate share (not joint liability for everyone's share); and you are not releasing a claim to a further distribution you have not yet received. Ask for the final accounting (or an informal summary) if you are a residuary beneficiary — you are entitled to it. Many organizations have counsel review any release over a set amount. Template 2 is the cover letter for the signed release, with optional initialed changes.
Can we accept a partial distribution before the estate closes?
Yes, and you should expect it. Executors commonly pay specific bequests within months and hold back part of the residuary until taxes and claims are settled, sometimes for a year or more. Receipt each distribution separately with the same wording (template 1), keep a running total, and when the final payment arrives send a letter that reconciles everything (template 2). The generator's year-end mode will list several distributions from the same estate on one letter if you prefer a single summary.
The Will restricts the gift to a purpose we no longer have. Can we accept it anyway?
Be careful. A restriction written into a Will is binding on you; spending the money on something else is a breach of the gift terms and, in many states, a matter the Attorney General can pursue. If the purpose is obsolete or impossible, the usual routes are to ask the executor to seek a court modification (cy pres or deviation) before distribution, or to accept the gift and petition under your state's UPMIFA statute later — both involve lawyers, so raise the problem early rather than after the check clears. If the restriction is simply unclear, a short letter from the executor confirming the intended use, kept with the receipt, is often enough. Note also that several states require executors to notify the state Attorney General when a charity is a beneficiary; that is their job, not yours.
The estate is giving us a house, stock or a car instead of cash. What changes?
Describe the property without stating a value, exactly as you would for a living donor's non-cash gift: "1,200 shares of XYZ Corp. received into our brokerage account on [date]" or "the real property at [address] by deed recorded [date]". The estate values the property for its own return using date-of-death values; the Form 8283 appraisal and Form 8282 resale-reporting rules that apply to living donors' income-tax deductions do not apply to a bequest, though your own gift-acceptance policy should still require title, environmental and marketability checks before you accept real estate. If you sell the property, the gain or loss is measured from the date-of-death basis, and as a charity you generally owe no tax on it.
Does a big bequest affect our public-support test or Form 990?
It can. Bequests count as contributions on Schedule A, and a single large one can tip a small organization toward the 2 percent per-donor cap. If the bequest is unusual in size, unexpected, from a disinterested party and not earmarked for operations, you may be able to treat it as an "unusual grant" and leave it out of the public-support computation entirely (Treas. Reg. §1.509(a)-3(c)(3)) — ask your preparer. The gift also goes on Schedule B if it exceeds the reporting threshold, listed under the decedent's name. None of this changes the receipt you send the executor.
Does the generator handle estate gifts?
Yes. If a donor name begins with "Estate of", or the Notes mention a bequest, executor, personal representative, Will, beneficiary designation, life-insurance proceeds, POD/TOD account or trust termination, the generator addresses the letter to the personal representative of the estate, adds a paragraph that names the decedent, records the receipt for the estate's records and extends sympathy, replaces "keep this letter with your tax records" with "the estate's records", and adds a note reminding you to hard-credit the decedent and to read any release before signing. Memorial gifts from living donors ("in memory of my late husband") and gifts from a living donor's family trust are not treated as bequests.
General information based on Internal Revenue Code §§170(f)(8), 642(c), 691, 2010(c)(3) (as amended by P.L. 119-21) and 2055; Treas. Reg. §1.509(a)-3(c)(3); IRS Forms 706 (Schedule O), 1041 and 990 (Schedules A and B); and IRS Publications 526 and 1771. State probate, release and Attorney General notice rules vary. Not legal, tax or accounting advice; have counsel review any release or restricted bequest.