TrustwiseBy cocreateidea

Topic

Charitable giving in your will — three ways, one decision.

Bequest in the will, beneficiary designation on a retirement account, or a charitable remainder trust. The right answer depends on what asset you're using and how big the gift is.

The four things to know

Quick takeaways.

Retirement accounts to charity = no tax

Charities don't pay income tax. So $100k from your IRA → $100k to charity. The same $100k from your IRA to your child → ~$70k after tax. Pick wisely.

Bequests in the will scale with your estate

A residuary share ("10% of my residuary to charity") adjusts naturally if your estate grows or shrinks. A specific dollar amount doesn't.

CRTs work for appreciated stock

Donate appreciated assets, get income for life, charity gets the remainder. Defers capital gains, generates an immediate income-tax deduction.

Use the legal name + EIN

Vague charity names cause probate delays. Most charities have a 'leave us in your will' page with the exact wording. Use it.

Ready to put this in writing?

A signed will is the foundation. Trusts and other structures build on top.

Charitable giving — Trustwise