Holiday Generosity and Your Estate Plan

The Season of Giving Is Here

The holidays remind you to pause and ask a simple question.
Who do you want to help this year?

Maybe you support a local pantry. Maybe you give to a global fund. Maybe you have a cause that shaped your own life. Whatever generosity looks like for you, your estate plan can carry that spirit forward long after the holiday lights come down.

You can support organizations you admire while still protecting your family. You can also unlock tax benefits that help your giving reach further.



Here are three ways to align your plan with your generosity during the holiday season.

One common way to give through your estate plan is to name a charity in your will or revocable living trust. This helps ensure your gift reaches the right organization and reflects your values.

You can leave a specific amount or a percentage. You can direct it toward a certain project or allow the charity to use it where needed most.



Use the charity’s full legal name to avoid confusion. Many organizations have similar names, and a small mistake can delay or block the donation. If your gift supports a specific purpose, confirm the charity can honor it before finalizing your plan.

A gift in a trust usually transfers more quickly than one in a will. A will must go through probate before the charity can receive funds. Either option reduces the taxable value of your estate. Most families do not owe federal estate taxes, but some states have their own estate tax rules with lower thresholds. If you live in one of those states, your family may gain additional tax savings through charitable gifts.

You can also name a charity as the beneficiary of your IRA, 401k, or other retirement account. This is a simple and often tax efficient way to support a cause you care about.

Family members who inherit your retirement accounts must pay income taxes on withdrawals. Charities do not. This means the charity receives the full amount, and your estate receives a deduction that may reduce estate taxes.

The SECURE Act requires most beneficiaries to withdraw the full balance of an inherited IRA within ten years. This limits their ability to spread out tax payments. Charities are exempt from this issue, so leaving these assets to a charity can be more efficient.

You may choose to leave retirement assets to a charity and pass other assets to your family. Certain beneficiaries like spouses, minor children, and people with disabilities still qualify for exceptions to the ten year rule. Reviewing your options with a professional helps you choose the best structure for your goals.

If you want to support a charity and create an income stream for yourself or your family, a charitable remainder trust may be the right fit. It works especially well for appreciated assets like stock or real estate that you want to sell without facing large tax bills.

A charitable remainder trust benefits both the charity and a non charitable beneficiary. The non charitable beneficiary can be you, your spouse, your children, or someone else you choose.

After you transfer your appreciated asset into the trust, the trustee sells it. You receive a charitable deduction instead of capital gains taxes. The proceeds are invested to generate income for you or your chosen beneficiary. At the end of the trust term, the remaining assets go to the charity.

This structure supports a cause you care about and can provide steady income during your lifetime. The trust does have specific rules and should be set up with guidance to make sure it works as intended.

Giving through your estate plan is a meaningful way to express gratitude and shape your legacy. Whether you want to help a local shelter or a global organization, there is a structure that supports your goals and your family.

If you want to explore your options, we can walk you through each step and help you build a plan that reflects your heart and your long term vision.

When you align your estate plan with your generosity, you create impact for the people and causes you care about.

You also reduce stress for your family and avoid avoidable tax issues.

Most of all, you get clarity and confidence about how your legacy will live on.

If you want a plan that fits your goals and reflects the way you give, we can help you get there.

Book a 15-minute call with our Client Services Director, April.