A donor has notified us that they have increased their bequest intention in their estate plans from 15% (originally booked with an estimated value of $200,000) to 30% (new provided estimated value of $930,000 as the total amount for the 30%).
Since there has been an increase in the percentage, I am aware that we can book a new bequest intention, but the question becomes at what value. It is my understanding that we can only book the value of the new 15% increase, which I understand as 50% of the estimated $930,000 ($465,000), since the original 15% was counted in a previous campaign. That the remaining $265,000 ($930,000 - $200,000 booked - $465,000 to be booked) cannot be counted since it would be considered an increase in the original 15% value already booked. Am I correct in my understanding? Also, can anyone provide where this is stated in the CASE Management and Reporting Standards book or documented elsewhere?
I was also given a specific hypothetical example to find out an answer, but I believe follows the same rules above. A donor has a previously booked bequest intention of 100% of their estate valued at $1,000,000, but recently sells their company for $50,000,000 increasing their overall estate value to $51,000,000, would we still not be allowed to adjust the value of the bequest intention? Even with that large of an increase to the estate?
Any information would be gratefully appreciated.