Final answer:
A donor can make three types of apportionments: specific, where certain assets are allocated to specific individuals; proportional, where assets are divided based on percentages; and residuary, where the remaining assets are distributed according to the donor's wishes.
Step-by-step explanation:
When it comes to donations and estate planning, a donor has the opportunity to make specific types of apportionment decisions. These decisions involve specifying how different parts of an estate or a donation should be allocated among beneficiaries or uses. The three main types of apportionment a donor can make are:
- Specific Apportionment: This occurs when a donor designates certain assets for specific beneficiaries. For example, a donor might apportion a particular piece of real estate to a family member.
- Proportional Apportionment: Here, the donor decides to distribute the assets based on fixed percentages to the beneficiaries. Rather than specific assets, each beneficiary receives a certain percentage of the total estate.
- Residuary Apportionment: After specific and proportional apportionments are made, the remaining assets (residuary) are distributed according to the donor's wishes, which could either be in specific amounts, percentages, or as the entirety to one beneficiary.
These apportionment methods are crucial for creating a clear, legally-sound estate plan and ensuring that a donor's wishes are honored after their passing.