Recognizing the increased financial need of charitable organizations in a post-pandemic world, as well as the possibility of a decreased federal estate tax exemption without congressional action by the end of 2025, more and more clients are interested in making charitable gifts through their estate plan. In particular, individuals wish to make gifts to organizations that are especially meaningful to themselves and their families. It is our job as estate planning attorneys to employ a strategic approach to gifting—not only to help our clients achieve maximum charitable impact—but also to take advantage of potential tax benefits to our clients. It is important for every estate planner to discuss charitable giving strategies with their clients, including the benefits and potential pitfalls of the most common methods of charitable giving.

Last Will and Testament

Creating a specific bequest in the individual’s will is the most straightforward way to make a gift to charity at the time of death. Many clients find this type of charitable giving to be preferable due to its simplicity. Charitable bequests can be monetary or nonmonetary gifts and can be for a specific asset or amount or a percentage of the estate’s residue. Gifts made to charity are not includable in the donor’s taxable estate for death tax purposes.