September 18, 2025
Estate planning is about reflecting on your values and leaving a legacy that tells your story. For many people, that means making space for the causes and charities that shaped their lives. Including charitable giving in your estate plan lets you support loved ones while also giving back in a meaningful way.
In this article, we’ll walk you through how to define your charitable goals, the best tools for giving, tax implications, and how to work with professionals so your wishes are honored.
Before you go looking for an organization to donate to, you need to take some time to reflect on your goals for charitable giving. Think about what’s important to you and the legacy you want to leave. Here are some questions to answer to guide your giving:
What causes align with my values?
Do I want to support local nonprofits, national organizations, or global efforts?
Do I want to affect immediate change or long-term impact?
Think of your own life experiences. For example, you might prioritize funding education if you value opportunity, or healthcare research if your family has been affected by an illness.
You may find it useful to create a personal mission statement for your charitable giving. Fidelity Charitable defines a charitable mission statement as a short statement that highlights the purpose of your charitable giving.
When your giving has a clear purpose, it becomes more focused. It’s easier to choose the right organization and feel good about your giving.
According to the IRS, as of 2024, there are more than 1.5 million 501(c)(3) tax-exempt organizations in the US. That means you have a lot of options when it comes to charitable giving. How do you choose the right organization?
The first step is finding an organization whose mission aligns with your charitable goals or your own charitable giving mission. Next, take a look at how the organization spends its funds and the results it’s achieving. This will make sure that your donation will have an impact and not get lost in overhead.
To examine a charity’s finances, you can review its Form 990. This annual document will show you how the organization spends its money. You can also use independent evaluation tools like the BBB Wise Giving Alliance, Charity Navigator, and GuideStar to confirm which organizations are well run and directing a significant portion of their funds to their causes.
Related: Advanced Estate Planning Strategies
Once you’ve narrowed down your search of charitable organizations to contribute to, the next question is how to contribute. You have several different options to donate when you’re estate planning for charitable giving.
A bequest is a gift in your will or trust that takes effect after death. You keep control of your assets during life, and the gift can be changed anytime by updating your plan. Bequests are simple, flexible, and reduce estate taxes by removing charitable gifts from your taxable estate.
You can name a charity as the beneficiary of a retirement account or life insurance policy. This bypasses probate and ensures the full value of retirement accounts goes to charity, since charities don’t pay income tax on withdrawals. Just be sure to use the charity’s exact legal name and review your designations regularly.
Charitable trusts let you combine giving with family financial goals. A charitable remainder trust pays income to you or loved ones first, then leaves what’s left to charity. A charitable lead trust does the opposite. Trusts can provide tax benefits and flexibility, but they require careful planning with an attorney.
A donor-advised fund (DAF) is a charitable account managed by a sponsoring organization. You contribute assets, receive an immediate tax deduction, and recommend grants to charities over time. DAFs are easy to set up and family-friendly, though contributions are irrevocable and fees apply.
A private foundation allows you to create your own charitable entity, giving you maximum control over grants and family involvement. They offer tax benefits and long-term legacy building but come with significant administrative responsibilities, making them most suitable for larger estates. However, private foundations are complex in terms of their formation, continued management, and compliance with state and federal laws.
Beyond just supporting a cause you believe in, estate planning for charitable giving can significantly reduce your tax burden. While estate planning, keep in mind the following considerations.
Estate Tax Deductions: Gifts to qualified charities are fully deductible from your taxable estate tax. This can greatly reduce or eliminate estate taxes for larger estates.
Inherited IRAs: Under the SECURE Act, most heirs must withdraw inherited retirement accounts within 10 years, creating large tax bills. Leaving IRAs to charity avoids those taxes entirely, while your heirs can receive more tax-friendly assets like stocks or cash.
Choose Assets Wisely: Retirement accounts are often the best assets to leave to charity, while appreciated assets or cash may be better for heirs. Coordinating which assets go where helps maximize value for both your family and the charity you’re supporting.
Lifetime Gifts: Donations during your lifetime can lower your income taxes, especially if you time them in high-income years or use tools like donor-advised funds.
Qualified Charitable Distributions (QCDs): If you’re 70½ or older, you can give directly from your IRA to charity. QCDs count toward your Required Minimum Distribution but don’t add to your taxable income.
Integrating charitable giving into your estate plan is not something to tackle alone. You’ll want the right professionals by your side to ensure your plan is legally sound and tax efficient. It will give you the peace of mind that your estate planning and charitable giving will lead to the legacy you intend.
Three professionals you should work with are an estate planning attorney, a financial advisor, and a tax professional. The best approach is usually a collaborative one, since each professional brings a different approach.
A charitable estate planning attorney is the starting point. They translate your charitable goals into clear legal language in your will or trust and make sure the documents meet IRS requirements. By identifying charities correctly and addressing contingencies, they help avoid disputes or missed tax benefits. If you’re considering a trust or more complex structure, an attorney guides you through those choices and integrates them with your broader estate plan.
A financial advisor looks at your full financial picture to determine what level of giving is possible without putting your security at risk. They consider your income needs, health care costs, and investment strategy, then help decide which assets are most appropriate for charitable gifts and which should be preserved for the family. Advisors also think about timing. They’ll show you how to make gifts in ways that align with market conditions or your tax situation.
A tax professional ties the plan together by making sure everything complies with federal and state tax rules. Because tax laws shift, they keep you informed of changes that could affect your strategy. Their guidance helps prevent costly errors and ensures your estate receives every deduction it deserves.
Even when working with the right professionals, you’ll need to occasionally revisit your estate plan. We recommend reviewing your will, trusts, and beneficiary designations every few years, and especially after major events like marriages, divorces, births, or health changes.
Tax law updates can also affect your charitable giving strategy, so it’s important to stay in touch with your advisors. Additionally, if your passions and values shift, you’ll want to make sure your chosen charities still reflect what matters most to you.
Read More: Beyond the planning: Your estate planning checklist
While estate planning with professionals, don’t forget to keep your family and loved ones in the loop. Charitable giving in estate planning can create confusion if family members aren’t prepared.
The best way to prevent misunderstandings is to talk openly about your plans. Share the values and stories behind your giving so loved ones see it as an expression of your priorities, not a rejection of your family.
Be clear about the general outline of your charitable gifts and, when appropriate, involve family in the process. Finally, make sure your intentions are documented clearly in your estate plan and consider leaving a personal note to explain your decisions.
Honest conversations now can prevent conflict later and ensure your legacy is respected.
How can I ensure the charity uses my gift the way I intend?
Work with your charitable estate planning attorney to clearly document your wishes in your will or trust and consider discussing your plans directly with the charity. Many organizations will help you create gift language or agreements to make sure your legacy is honored.
Which assets are best to leave to charity versus to my family?
It often makes sense to leave retirement accounts like IRAs or 401(k)s to charity, since charities pay no income tax on those assets. Heirs usually benefit more from tax-favored assets like stocks or real estate, which receive a step-up in basis.
I’m not sure yet which charities I want to support. What are my options for a flexible plan?
You can use a donor-advised fund, community foundation, or broad instructions in your estate plan to keep flexibility. This allows your gifts to adapt over time, while still ensuring they are used for charitable purposes.
Can I change my charitable bequests later if I change my mind?
Yes. As long as you’re alive and legally competent, you can update your will, trust, or beneficiary designations at any time. The only exception is if you’ve made an irrevocable gift, such as through a charitable remainder trust.
What happens if the charity I name no longer exists when I pass away?
Your charitable estate planning attorney can draft language naming a backup charity or allowing funds to be redirected to a similar cause, so your gift still reflects your intent.
Is it better to give during my lifetime or through my estate?
Both approaches have advantages. Lifetime gifts can provide income tax deductions and let you see the impact of your giving, while estate gifts preserve assets for your own needs during life. Many people use a combination of both.
Can I leave both family and charity in my estate plan?
Absolutely. Many people divide their estate by percentage, so both loved ones and charitable causes are included. It doesn’t have to be an all-or-nothing choice.
Charitable giving through your estate plan is one of the most meaningful ways to leave a legacy. Once you’ve decided on your goals for your charitable giving, you can get started looking for the right organizations that align with your values. Be sure to communicate with your family and work with the right professionals. This approach ensures your generosity can support loved ones and causes you care about for years to come.
For over 40 years, we’ve supported families in Oregon and Washington with estate planning and charitable giving. If you’re ready to explore how charitable giving fits into your estate plan, our attorneys are here to help you create a plan that’s both effective and uniquely yours. Schedule a consultation today to learn more.
