Estate planning is not solely about distributing assets after death — it is also about defining the legacy you want to leave behind. For many individuals and families, charitable giving is an important part of that legacy. When incorporated thoughtfully into an estate plan, charitable giving can support meaningful causes while also creating valuable tax and financial planning opportunities.
There are a variety of ways charitable goals can be integrated into an estate plan depending on an individual’s assets, family objectives, and long-term vision. Common strategies include:
- Charitable Bequests – Leaving a specific amount, percentage, or asset to a charitable organization through a Will or Trust
- Donor-Advised Funds – Contributing assets into a charitable account that allows ongoing recommendations to nonprofits over time
- Gifts of Appreciated Assets – Donating stocks or real estate directly to charity to potentially avoid capital gains taxes
- Charitable Trusts – Using charitable remainder or charitable lead trusts to combine philanthropy with income or wealth transfer planning
- Qualified Charitable Distributions – Allowing certain retirees to donate directly from retirement accounts in a tax-efficient manner
For individuals with highly appreciated assets, charitable planning can be especially beneficial. Donating appreciated securities or real estate directly to a qualified charity may allow the donor to avoid capital gains taxes while also receiving a charitable deduction based on the asset’s fair market value. These strategies can maximize both the impact of the gift and the overall efficiency of the estate plan.
Updating an Existing Will to Include a Charitable Gift
A common question clients ask is whether adding a charitable bequest to an existing Will requires drafting an entirely new Will or simply preparing a codicil, which is a legal amendment to an existing Will.
The answer depends largely on the scope of the desired changes. If a client is making a relatively minor update — such as adding a specific charitable bequest while leaving the remainder of the estate plan unchanged — a codicil may be appropriate. However, if there are multiple revisions, outdated provisions, changes in family dynamics, tax considerations, or broader estate planning updates needed, preparing a new Will is often the cleaner and more effective approach.
In many cases, drafting a new Will can help avoid confusion, reduce the risk of inconsistencies, and ensure the estate plan accurately reflects the client’s current wishes and financial circumstances.
Ultimately, the best option depends on the complexity of the changes and the overall condition of the existing estate planning documents.
Charitable giving should work in coordination with an overall estate plan rather than as a standalone strategy. The right approach depends on each individual’s financial circumstances, philanthropic priorities, and family objectives. With proper planning, charitable giving can help create a lasting legacy that reflects both personal values and long-term financial goals.
Start Planning Today
Estate planning is not just about documents. It is about protecting your family, preserving your intentions, and creating clarity for the future. To learn more or schedule a consultation with Nickolaus Herweh or a member of our Estate Planning Practice Group, contact DBL Law or specifically to Nickolaus at 513-357-7676 / nherweh@dbllaw.com.
