How Can You Incorporate Charitable Giving Into Your Estate Plan?

 Posted on May 23, 2025 in Estate Planning

Having an estate plan is essential for safeguarding your assets and protecting your family and yourself against future unforeseen worst-case scenario events such as incapacitation. There is another key role that estate planning can fulfill, and that is providing a way to ensure your values and legacy live on via charitable giving. Many different instruments can be used to incorporate charitable giving as part of a comprehensive estate plan. Besides their role in cementing your family’s legacy and giving you a chance to give back after you have passed, they can offer great tax savings for your estate. An experienced Denton County, TX, estate planning attorney can help you incorporate charitable giving into your estate plan.

What Are Some Common Ways to Incorporate Charitable Giving Into Your Estate Plan? 

Beneficiaries of Retirement Accounts

By naming a charity as a beneficiary of a retirement account such as a 401(k), you can give these funds directly to the charity, which can enjoy them tax-free as long as it is a tax-exempt organization.

Beneficiaries of Life Insurance Accounts

Another simple way to leave money to charity is by designating a charity as a beneficiary of your life insurance. Here, too, the charity can receive the money tax-free. 

Charitable Trusts

A charitable remainder trust (CRT) allows you to provide income for yourself and any beneficiaries you choose during your lifetime, with the remainder going to a charity of your choice upon your death or at a specific time period. This trust also has tax benefits as it reduces your taxable estate. A charitable lead trust (CLT) works in the same way, but the charity receives income during your lifetime, while the beneficiaries receive the remainder.

Bequest in a Will

This is a simple way to make a charitable gift by including a donation to the charity or charities of your choice in a will. Of course, it is important to ensure that the will is properly executed and legally valid. 

Call a Denton County, TX Estate Planning Attorney 

Estate planning is about more than protecting your assets. It is about protecting your family and your legacy. As you think about what you wish for your estate plan, you can consider incorporating charitable giving strategies. The experienced Flower Mound, TX estate planning attorney at Colbert Law Group PLLC can work with you to incorporate charitable giving into your estate plan. Call the office for a consultation at 972-724-3338.