A lot of people want to include charitable giving in their estate plan, but hold back because they think it’s complicated. They picture trusts, tax shelters, maybe even a team of advisors—and decide it’s easier to just keep giving during their lifetime and leave the rest alone.
The truth is, it doesn’t have to be complicated. You don’t need a private foundation to make a lasting impact. In most cases, a few small decisions are all it takes.
One of the simplest ways to leave a gift is by naming a charity as a beneficiary. You can do that through your will, a trust, or even directly on a retirement account or life insurance policy. It’s usually just a form—no need for extra legal documents. And when you go this route, the gift usually avoids probate and goes straight to the organization.
If you have a traditional IRA or 401(k), naming a charity as the beneficiary can also make sense from a tax standpoint. Those accounts are taxable to individuals who inherit them, but not to qualified nonprofits. So the full value of your gift goes to the charity, not the IRS.
Some people prefer to leave a specific amount or a percentage of their estate to charity through their will or trust. That works too. You can make it conditional if needed—for example, the gift only happens if your estate exceeds a certain value. That way, you can still prioritize family, but give when there’s room to do so.
If you want flexibility or plan to give to multiple organizations over time, a donor-advised fund (DAF) might be worth considering. You can contribute during your lifetime, recommend grants as you go, and then leave instructions for what happens to the fund when you’re gone. You can also name someone to take over that role if you want the giving to continue across generations.
Sometimes people already give monthly to a few causes they care about and just want that to continue. That can be worked into your estate plan, too. It doesn’t have to be formal or fancy—it just has to be written down somewhere it counts.
The important thing is to be clear. Verbal promises and “I always meant to” don’t carry weight after you’re gone. A few short conversations now can make a real difference later.
Charitable giving doesn’t need to be reserved for high-net-worth clients or complex plans. If giving is part of your life, it can—and should—be part of your estate plan.
And it doesn’t need to be perfect. It just needs to be intentional.
