Leaving a Legacy: Including Charitable Giving in Your Estate Plan

James Nici

Most people think of estate planning as a way to pass assets to loved ones—but it can also be a powerful tool for making a lasting impact on the causes and communities you care about most. Whether it’s a local nonprofit, your place of worship, a university, or a national charity, charitable giving through your estate plan allows you to leave a legacy that reflects your values.

 

Here’s how you can incorporate charitable giving into your estate plan—and why it’s worth considering.

 

Why Include Charitable Giving in Your Estate Plan?

 

Charitable giving isn’t just for the ultra-wealthy. Anyone can make a meaningful contribution through thoughtful planning. Benefits include:

  • ✅ Supporting causes close to your heart

  • ✅ Reducing estate and income taxes

  • ✅ Inspiring your family with a legacy of generosity

  • ✅ Leaving a lasting impact in your community or beyond

Even a modest gift can go a long way when directed to the right organization.

 

Ways to Give Through Your Estate Plan

 

There are several ways to include charitable gifts in your estate plan—some simple, some more sophisticated. The best approach depends on your financial situation and philanthropic goals.

 

1. Name a Charity in Your Will or Trust

 

This is one of the easiest ways to give. You can designate a specific dollar amount, a percentage of your estate, or a particular asset (like real estate or stocks) to go to a charitable organization upon your passing.

 

2. Make a Charity a Beneficiary

 

You can name a nonprofit as a beneficiary of your:

  • Retirement accounts (like an IRA or 401(k))

  • Life insurance policy

  • Bank or investment accounts

This can also offer tax advantages—especially with retirement accounts, which can be heavily taxed if left to individual heirs.

 

3. Establish a Charitable Trust

 

If you’re interested in more strategic giving, a charitable remainder trust (CRT) or charitable lead trust (CLT) can provide income to you or your beneficiaries for a period of time, with the remainder going to charity. These can also offer significant tax benefits.

 

4. Create a Donor-Advised Fund (DAF)

 

A DAF allows you to set aside money for charitable giving, take an immediate tax deduction, and decide later which charities will receive the funds. You can even involve your family in the decision-making, helping build a tradition of giving.

 

Tax Benefits of Charitable Giving

 

In addition to supporting causes you care about, charitable giving can help reduce:

  • Estate taxes: Charitable gifts are typically exempt from estate taxes.

  • Capital gains taxes: Donating appreciated assets (like stock) can help you avoid capital gains taxes.

  • Income taxes: Some charitable giving strategies allow you to take deductions during your lifetime or for your estate.

Proper planning ensures you—and your chosen charities—get the maximum benefit.

 

Make Giving Part of Your Legacy

 

When you include charitable giving in your estate plan, you’re doing more than writing a check—you’re making a statement about what matters to you. It’s an opportunity to create a legacy of generosity, compassion, and purpose.

 

At Nici Law Firm  we help clients design estate plans that reflect their values as well as their financial goals. Whether you're passionate about education, healthcare, the arts, animal welfare, or something else entirely, we’ll help you leave a legacy that lasts.

 

Contact us today to explore your charitable giving options and build a plan that makes a difference.