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Estate planning isn’t just about distributing assets; it’s an opportunity to leave a lasting impact on causes close to your heart. Incorporating charitable giving into your estate plan allows you to support meaningful organizations while potentially reaping tax benefits. Americans gave over $320 billion to nonprofit organizations in 2022, according to research by the Lilly Family School of Philanthropy. This level of generosity shows that charitable giving is deeply embedded in our national values.
However, while many people support charitable causes during their lifetime, far fewer incorporate charitable giving into their estate plans—missing a meaningful opportunity to continue that legacy and create long-term impact. At Rhodium Law, we believe estate planning and charitable giving go hand in hand. In this post, we’ll explain why charitable giving should be a part of your estate plan, explore smart strategies that benefit both you and your community, and share how working with a Cleveland estate planning lawyer can help ensure your legacy is honored exactly as you intend.
When most people think of estate planning, they think of passing assets to loved ones—children, spouses, or other heirs. But your legacy can extend far beyond family. Estate planning charitable giving strategies serve multiple purposes. By incorporating charitable gifts into your estate plan, you can:
Whether it’s supporting local schools, religious institutions, medical research, or community foundations, charitable giving allows you to support causes and organizations that align with your values. There can be great satisfaction from contributing to the greater good, especially when it helps your values to live on.
If your estate is large enough to be subject to federal estate taxes, charitable donations can help reduce or eliminate that liability. For 2025, the federal estate tax exemption is $13.99 million per individual (so $27.98 million for married couples), but laws are always subject to change. The lifetime gift/estate tax exemption will decrease significantly at the end of 2025 unless Congress extends or modifies the soon to be sunset provision from the the Tax Cuts and Jobs Act of of 2017. Strategic planning now can protect your legacy.
Certain strategies, like charitable remainder trusts or donor-advised funds, can provide income tax deductions while allowing you to retain some benefits during your lifetime.
Estate planning charitable giving strategies set a powerful example for your family. It communicates what you care about and shows how they can carry your legacy forward by carrying your values forward.
There’s no one-size-fits-all approach to estate planning charitable giving strategy. The right method depends on your financial situation, estate size, tax concerns, and philanthropic goals. Here are several powerful tools you can use:
A bequest is the most straightforward way to leave a gift to a charity. You can leave:
You can name one or more charities in your Last Will and Testament or revocable living trust, and you retain full control during your lifetime. After your death, the gift will be distributed according to your instructions.
➡️ Example: “I give 10% of my estate to the Greater Cleveland Food Bank.”
A Charitable Remainder Trust is an irrevocable trust that provides income to you or your beneficiaries during life, and then passes the remaining assets to charity.
Benefits:
This strategy works well for those who want to support a cause and generate income at the same time.
In contrast to a CRT, a Charitable Lead Trust provides income to a charity first, then distributes remaining assets to your heirs at the end of a set term.
Benefits:
A CLT is often used by individuals who want to benefit both charities and family while minimizing estate taxes.
A Donor-Advised Fund (DAF) is like a personal charitable giving account. You contribute assets (cash, stocks, etc.) to a fund held by a public charity (such as Fidelity Charitable or Vanguard Charitable) and receive a tax deduction immediately.
You then recommend grants to your chosen charities over time. This gives you flexibility, control, and an easy way to organize your giving.
DAFs are great for:
If you’re age 70½ or older, you can donate up to $100,000 per year directly from your traditional IRA to a qualified charity through a Qualified Charitable Distribution (QCD). This satisfies your Required Minimum Distribution (RMD) and reduces your taxable income.
This strategy is especially beneficial for retirees looking to reduce their taxable income while supporting causes they care about.
You can name a charity as a beneficiary on:
This option avoids probate and may allow the charity to receive the full value of the account, tax-free.
Ohio does not impose a state estate tax, but your estate may still be subject to federal estate tax depending on its size. Additionally, Ohio probate laws may affect how gifts are distributed, so it’s important that your plan is correctly structured.
Supporting local nonprofits, such as the Cleveland Foundation or 100 Women Strong Ohio, is a meaningful way to strengthen your community through legacy giving.
Charitable estate planning is full of opportunities—but also legal and tax complexities. Working with a qualified Cleveland estate planning lawyer helps ensure that:
At Rhodium Law, we take the time to understand what matters most to you. Then we help you design a plan that protects your family, supports your favorite causes, and leaves the legacy you envision.
If you’ve been wondering how to support meaningful causes after your lifetime—or want to reduce your tax burden while helping others—charitable giving in estate planning may be the right solution.
Don’t wait until it’s too late. Contact us to schedule a free consultation and learn how we can help you create a plan that reflects your values and supports your community for generations to come.
