Every estate plan reflects a set of priorities: providing for family, protecting assets, and deciding what happens to a lifetime of hard work. For many people, those priorities extend beyond their own household. Charitable giving in estate planning lets you support causes that matter to you long after your lifetime, while also offering practical benefits for your family and your tax situation.
At Roark & Mansur, our team regularly advises on the basics of estate planning for charitable giving and the tools available to Massachusetts residents.
Why Include Charitable Giving in Your Estate Plan?
Charitable giving does not require immense wealth or a complicated plan. A gift can be as straightforward as a percentage of your estate or a fixed dollar amount directed to an organization you trust. A well-planned gift can support causes connected to your values, reduce the taxable value of your estate, create a lasting legacy, and involve your family in decisions about giving, often strengthening shared values across generations.
Because estate plans are personal documents, there is no single right way to approach charitable giving. What matters is that the plan reflects your actual wishes and works within Massachusetts law.
What Estate Planning Tools Support Charitable Giving?
Wills and Living Trusts
Wills and living trusts are still the most common vehicles for charitable giving. A charitable bequest, meaning a gift made through your will or trust, can specify a dollar amount, a percentage of your estate, or a particular asset. Because a will or trust can be updated as circumstances change, a charitable bequest offers flexibility that many find appealing.
Charitable Trusts
For those with larger estates or specific tax goals, charitable trusts offer more structure. A charitable remainder trust can provide income to you or your beneficiaries during your lifetime, with the remaining assets passing to a charity afterward. A charitable lead trust works in reverse, providing income to a charity first and the remainder to your heirs.
Gift of Retirement Assets
A gift of retirement assets, such as funds in an IRA or 401(k), is one of the simplest ways to support a charity. Naming a charity as a beneficiary designation on a retirement plan avoids income tax that heirs would otherwise owe, making it efficient for many families.
Example of Charitable Giving in Massachusetts: The Pan-Mass Challenge
The Pan-Mass Challenge, known widely as the PMC, is a Massachusetts-based cycling fundraiser that has raised more than one billion dollars for cancer research and treatment at Dana-Farber Cancer Institute since it began in 1980. Riders travel routes across the state each summer, and the funds they raise go directly to Dana-Farber’s work.
The PMC is a useful example of legacy giving because many longtime supporters extend their commitment beyond a single year’s ride or donation, looking instead for ways to build their connection to the cause into a broader estate plan.
How Can You Name a Charity in Your Estate Plan?
Naming an organization such as the PMC generally follows the same process as naming any other charity. According to the PMC’s own Legacy Society, supporters can include the organization through a charitable bequest in a will or living trust, or by listing it as a beneficiary designation on a retirement plan, life insurance policy, donor-advised fund, or brokerage account.
The process typically requires nothing more than updating a form or adding a sentence to a will, and it does not require giving up access to the asset during your lifetime. This same approach applies broadly: whether you want to support Dana-Farber, a local school, or a religious organization, estate planning for charitable giving tends to follow familiar patterns of a bequest, a trust provision, or a beneficiary designation.
Why Work with a Massachusetts Estate Planning Attorney?
Massachusetts has its own rules governing wills, trusts, and estate taxes, and a plan drafted without local guidance can create unintended results. A Massachusetts estate planning attorney can help you choose the right vehicle for your charitable goals and confirm that your documents will hold up as intended. Because tax laws and family situations change over time, periodic review with an attorney also helps keep a plan current.
Frequently Asked Questions About Charitable Giving
What are the potential tax advantages of charitable giving?
A charitable gift can qualify for an unlimited federal estate tax charitable deduction, since assets left to a qualified charity are removed from your taxable estate before that deduction is calculated. In Massachusetts, where estates over $2 million are subject to state estate tax, a charitable gift that brings your estate below that threshold can eliminate state estate tax liability entirely. An attorney can model these numbers against your specific estate.
How can I include a charity in my estate plan?
Start by identifying the charity’s exact legal name and tax identification number, since vague language can cause delays or disputes during administration. From there, you can decide whether to leave a fixed dollar amount, a percentage of your estate, or a contingent gift that only takes effect if other beneficiaries are no longer living. An attorney can draft the precise language needed so the gift holds up as written.
What is the difference between a charitable bequest and naming a charity as a beneficiary?
Both are revocable, meaning you can change your mind and update either one at any time before your death, unlike an outright lifetime gift to a charity, which is generally permanent. A bequest becomes part of your probate estate and is distributed according to the will’s instructions, while a beneficiary designation is a contractual instruction that overrides whatever your will says.
Do I have to rewrite my will to make a gift to a charity?
No, and the two approaches are not mutually exclusive. You could name the charity as a beneficiary on one account now while still discussing a will-based bequest with your attorney down the road, allowing you to build a legacy gift in stages rather than all at once.
A Personal Connection to Giving
Charitable giving often becomes personal once it connects to people we know. Daniel Mansur, co-founder of Roark & Mansur Law, PLLC, recently marked his 30th year riding in the Pan-Mass Challenge, a milestone he proudly shared with his community on LinkedIn.
Whether your connection to giving comes from decades with an event like the PMC or a newer commitment to a cause you believe in, estate planning offers a practical way to make that commitment part of your legacy. If you are considering charitable giving in your estate plan, our office is available to help you build a plan suited to your goals. Contact us today.