Many people think of charitable giving as something they do occasionally—writing a check, donating items, or supporting a cause they care about. But with thoughtful planning, charitable giving can become a powerful part of your overall estate plan, helping you support meaningful causes while also providing financial and tax benefits for you and your family.

Charitable planning is about aligning your values with your long-term goals. Whether you want to support a local Minnesota nonprofit, your church, a school, or a national organization, there are tools that can help you give more effectively and intentionally.

Why Include Charitable Giving in Your Estate Plan?

Charitable planning can offer several benefits beyond generosity:

• Create a lasting impact: Ensure your support continues for generations.

• Reduce taxes: Certain charitable gifts can reduce income, estate, or capital gains taxes.

• Clarify your legacy: Communicate what matters most to you and your family.

• Support causes you care about: Direct your resources to organizations that reflect your values.

For many families, charitable planning also opens meaningful conversations about purpose, community, and stewardship.

Common Charitable Planning Strategies

An attorney or advisor that knows about estate plans and charitable planning can be a key asset to figuring out how to maximize your gift while minimizing taxes on your estate.

There is no one-size-fits-all approach. The right strategy depends on your financial situation, goals, and the causes you want to support.

1. Bequests in a Will or Trust

One of the simplest ways to give is to include a charitable gift in your will or trust. This can be:

• A specific dollar amount

• A percentage of your estate

• A particular asset (such as real estate or securities)

This approach allows you to maintain control of your assets during your lifetime while ensuring a portion goes to charity after your passing.

2. Beneficiary Designations

You can name a charity as a beneficiary of:

• Retirement accounts (IRA, 401(k))

• Life insurance policies

• Payable-on-death accounts

This method can be especially tax-efficient, as some assets are better suited for charitable gifts than for individual heirs.

3. Donor-Advised Funds (DAFs)

A donor-advised fund allows you to make a charitable contribution, receive an immediate tax deduction, and recommend grants to charities over time. DAFs are popular because they:

• Simplify recordkeeping

• Allow flexible timing of gifts

• Encourage long-term philanthropic planning

4. Charitable Trusts

Charitable trusts can be more complex but highly effective. Common options include:

• Charitable Remainder Trusts (CRTs): Provide income to you or your beneficiaries, with the remainder going to charity.

• Charitable Lead Trusts (CLTs): Provide income to a charity first, with remaining assets eventually passing to your heirs.

These tools can be useful for families with significant assets or complex tax considerations.

5. Gifts of Appreciated Assets

Donating appreciated assets—such as stocks or real estate—can help you avoid capital gains taxes while supporting a charitable organization.

Avoiding Common Pitfalls

While charitable planning can be rewarding, it’s important to plan carefully. Common mistakes include:

• Naming charities incorrectly or incompletely

• Failing to coordinate charitable gifts with beneficiary designations

• Overlooking tax implications

• Not updating plans as circumstances change

An experienced estate planning attorney can help ensure your charitable goals are carried out exactly as you intend.

Charitable Planning and Family Legacy

For many families, charitable planning is about more than money—it’s about values. Involving children or grandchildren in charitable decisions can help pass on a sense of responsibility and generosity.

By incorporating charitable giving into your estate plan, you can transform personal success into a lasting legacy that benefits both your loved ones and your community.

Final Thoughts

Charitable planning allows you to give with purpose, clarity, and impact. Whether your goals are simple or complex, thoughtful planning can help ensure your generosity makes a difference—today and for generations to come.

If you’re interested in exploring charitable planning as part of your estate plan, speaking with an estate planning attorney can help you understand your options and design a strategy that reflects your values and financial goals.

Contact us today to discuss your goals and create a plan that works for you and your values.