Explaining the Difference Between a Bequest and an Endowment

The Shaykh : The fourth point: The difference between a bequest and an endowment. Answer: Yes, there are differences between them. One of them is that an endowment is a binding contract that takes effect immediately, whereas a bequest is a permissible contract that does not take effect until after death. For example, if a man bequeaths his house to be an endowment after his death, we say that you have the option regarding this bequest. If you wish to cancel it, you may cancel it. If you wish to increase or decrease it, you may do so. However, when he dies, we look to see if this house is one-third or less of what he left behind, or if it is more. If it is one-third or less, it is executed. If it is more than one-third, the excess is suspended pending the approval of the heirs.