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Charitable giving isn’t just generous—it can also be a smart part of your estate plan. Whether you’re passionate about your church, a local nonprofit, or a national cause, you can make a meaningful impact while potentially reducing taxes for your estate or heirs.
Here’s how Georgia residents can incorporate charitable giving into their estate plans—with both simplicity and strategy.
Why Charitable Giving Matters in Estate Planning
Including charitable gifts in your estate plan lets you:
- Support causes you care about after you’re gone
- Leave a legacy tied to your values
- Reduce potential estate taxes (for high-net-worth estates)
- Minimize income or capital gains taxes during your lifetime
Even modest estates can benefit from charitable planning with the right tools.
1. Name a Charity in Your Will or Trust
The simplest way to give: leave a specific dollar amount or percentage of your estate to a charitable organization in your will or revocable living trust.
Example:
“I leave 5% of my estate to [Charity Name], EIN [#].”
This allows your gift to be distributed after your death through probate (or trust administration), and it can be modified at any time while you’re alive.
👉 Learn how revocable living trusts work in Georgia
2. Use Beneficiary Designations
Retirement accounts, life insurance policies, and bank accounts allow you to name charitable beneficiaries directly. This bypasses probate and often provides better tax benefits.
This works well because:
- Charities don’t pay income tax on inherited IRAs or 401(k)s
- Your estate may receive an estate tax deduction for the donation
- It’s easy to set up and change
Pro tip: Leave traditional retirement assets to charities, and leave Roth IRAs or appreciated stock to individuals to maximize tax efficiency.
3. Give Through a Donor-Advised Fund (DAF)
Donor-Advised Funds are popular among donors who want flexibility and tax benefits now, while deciding how to give later.
How it works:
- You contribute assets to a DAF (cash, stock, etc.)
- You receive an immediate income tax deduction
- The fund grows tax-free
- You or your heirs can direct donations to various charities over time
DAFs are ideal for families who want to create a culture of giving without the administrative burden of a private foundation.
4. Create a Charitable Remainder Trust (CRT)
A Charitable Remainder Trust provides income to you (or someone else) for life or a set period, with the remainder going to charity.
It can:
- Reduce estate and income taxes
- Help avoid capital gains on appreciated assets
- Provide predictable income during retirement
- Support a cause you care about long-term
CRT strategies are best suited for high-net-worth individuals or those with appreciated real estate or investments.
5. Consider a Charitable Lead Trust (CLT)
Opposite of a CRT, a Charitable Lead Trust provides income to a charity first, then the remainder goes to your heirs. This is a tax-advantaged way to pass wealth while supporting a nonprofit during your lifetime.
CLTs can significantly reduce gift and estate tax liability, especially when interest rates are low.
6. Make Lifetime Gifts Now
If you want to see your impact while you’re still alive, consider making annual gifts. The IRS allows:
- Up to $18,000 per person per year (in 2025) without reducing your lifetime exemption
- Unlimited direct payments to qualified charities with no tax reporting
- Potential deductions for income taxes if you itemize
👉 Review 2025 gift tax limits and charitable strategies
Local Considerations for Georgians
While Georgia does not have its own estate or inheritance tax, strategic charitable giving can still provide benefits for:
- Reducing federal tax exposure
- Passing more to heirs with less friction
- Avoiding capital gains on appreciated assets
- Honoring Georgia-based causes that matter to you
Work with a Georgia estate planning attorney to ensure your gifts align with your plan and comply with both federal and state requirements.
Plan with Purpose
At Hurban Law, LLC, we help Georgia residents incorporate charitable giving into their estate plans with clarity and care. Whether you want to leave a one-time bequest or build a legacy of long-term giving, we’ll help you choose the right structure to reflect your goals—and protect your loved ones.
Contact us today to start planning a legacy that gives back.
