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A well-established plan made during your lifetime can help mitigate the tax impact on assets that have appreciated significantly during your lifetime. When structured properly, a charitable bequest with a Donor-Advised Fund may reduce estate tax liability, enhance philanthropic impact, and establish a lasting family legacy.
Certain assets are particularly well suited for charitable bequests. Qualified assets, such as 401(k) plans or IRAs, are typically taxable to future beneficiaries. In contrast, assets that may receive a step-up in basis at death—such as taxable investment portfolios—can be more efficiently transferred to family members. Designating qualified retirement assets for charitable purposes can provide an estate tax deduction while supporting charitable giving for years to come.
A charitable bequest with a Donor-Advised Fund also offers flexibility. Successor donor advisors, such as family members, may be named to directs grants to charities, or the fund may be designated to support charities over time in the donor’s name through a charitable endowment. This approach allows philanthropic goals to continue well beyond one’s lifetime.
If you are considering a charitable gift as part of your estate plan, these strategies may offer meaningful benefits. As with any estate planning decision, you should consult your financial, legal, and tax advisors before making changes.
Types of Bequest Assets to Consider
Wills & Estates
IRAs, 401(k)s and Qualified Plans
Life Insurance
Charitable Remainder Trust
Benefits of a Donor-Advised Fund
Cost effective and easy to set up with a simple application
You can leave a legacy in your family’s name by naming the account (e.g., The William’s Family Charitable Fund)
A charitable deduction may help reduce your estate tax liability
We can distribute gifts over time to several of your favorite charities
Professional investment management from Eaton Vance, whose history dates to 1924
How to Set Up a Bequest
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Change the beneficiary designation for your assets
A Sample Language to Designate the U.S. Charitable Gift Trust as the Beneficiary of Assets is available here.
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Keep original application and beneficiary designations with your estate documents and fax a copy of the application to the Administrator.
Have concentrated stock, mature capital gains, or appreciated assets?
Get in touch to learn more about how the U.S. Charitable Gift Trust fits into your overall wealth planning strategy.
