How to Leave Money to Charity in your Georgia Estate Plan

Georgia residents have flexible options for incorporating charitable giving into an estate plan, ranging from simple to complex structures. You can leave an outright or residuary bequest in a standard Will or Trust, or bypass probate entirely by listing a charity as a direct beneficiary on accounts, IRAs, or life insurance. High-net-worth individuals can utilize advanced, tax-advantaged strategies like Charitable Remainder Trusts (CRTs), Charitable Lead Trusts (CLTs), or flexible Donor-Advised Funds (DAFs). While there are no legal caps on how much you can donate, evaluating your estate against federal tax exemption thresholds helps maximize overall tax efficiency. Ultimately, evaluating your total net worth and tax goals will help determine whether standard designations or structured Trusts offer the best fit.

If you want part of your estate to go to a cause you care about, you have more options than most people realize. This post covers the main ways Georgia residents can build charitable giving into an estate plan.

The Simplest Approach: A Charitable Bequest in your Will or Trust

Most people understand that they can name a charity as a beneficiary in their Will or Trust. Some people choose to name a charity to receive a portion of their assets upon death. This is called an outright bequest. You can opt to name a specific dollar amount or a specific percentage of your assets. Some charities also receive gifts of tangible assets like cars or furniture. You can also direct that assets be sold and the proceeds given to charity.

Another type of gifting option is called a residuary bequest. This type of bequest comes into play after all other gifts have been paid out of the estate. So, for instance you can leave your estate with specific gifts, or the option to choose specific gifts, to your loved ones, and then direct that what is remaining, the residuary, be given to or sold to benefit a specific charity.

Another way to make provisions that may benefit a charity is to choose to name the charity as the remote contingent beneficiary. This means that a charity is named to scoop up any assets that cannot pass directly to a beneficiary or their heirs. For example, if a person left their estate to their child, but their child predeceased them and didn’t have children, a remote contingent beneficiary may come into play.

When you make a gift, of any kind, within your Will or Trust, it is crucial to provide as much detail as possible about the gift and the intended beneficiary. So, with a charitable provision you should include the charity’s full legal name, EIN (if available), and a backup provision if the charity no longer exists.

Why should I name a backup provision for a charitable gift within my estate plan?

In estate planning, it is a good rule of thumb to name backups for just about everything. This is to allow for some flexibility within the plan. For instance, you plan to leave your assets to your spouse, if your spouse is living at the time of your death. If not, you leave the assets to your children in equal parts, if they are living. And so on.

The same applies to charities. Many charities withstand the test of time and live on for hundreds of years. But it’s important to have a backup plan in place in case they do not. Many people choose to name another specific charity as their successor, others choose their living heirs (as the state sets forth under Georgia law), and others simply say another charity doing similar work. Any option is a good one!

Naming a charity as beneficiary on a financial account

A way to make a financial gift to a charity that bypasses a Will or Trust, is to name the charity as a death beneficiary directly on a financial account.

Many people choose to utilize charitable beneficiary designations on retirement accounts (IRAs, 401ks) because they are particularly tax-efficient. Naming a qualified charity as the beneficiary of a traditional IRA can be an income-tax-efficient way to make a charitable gift because the charity generally does not pay income tax on the distribution, whereas individual beneficiaries may owe income tax on distributions from a traditional IRA. Roth IRA treatment and the overall tax benefit depend on the circumstances. While the account still counts against your taxable estate, the charitable deduction offsets it. If you name a charity alongside individual beneficiaries on the same account, ask your advisor about separating the accounts or paying out the charity’s share by September 30 of the year after death so the individual beneficiaries keep their favorable payout treatment, and preserves designated-beneficiary treatment for the individuals.

A similar type of gift is to name a charity as death beneficiary on your Life insurance policy. Unlike a retirement account, a life insurance death benefit is generally income-tax-free to any beneficiary, so naming a charity does not create the same income tax advantage. The benefit is on the estate tax side: a death benefit from a policy you own is otherwise included in your taxable estate, and leaving it to charity qualifies for the estate tax charitable deduction.

Bank accounts may allow you to designate a payable-on-death (POD) beneficiary, and some accounts may offer a transfer-on-death (TOD) designation. Depending on the financial institution and applicable state law, you may be able to name a charitable organization as the beneficiary. These designations generally allow the account funds to pass directly to the named beneficiary upon your death, without going through probate.

More Complicated Approaches (but they may be right for you)

If you are a high net worth individual or couple, it may be wise to explore more complicated options. These options are special Trusts designed for charitable giving and can provide tax relief in the long run. Beware though, these are incredibly complex gifting structures and should be entered into with caution, and with a skilled professional’s guidance.

Charitable Remainder Trust (CRT)

A CRT is an irrevocable Trust that pays income to you (or another beneficiary) for a period of years, with the remainder going to a named charity. So, in the simplest terms, the Trust is established to benefit a beneficiary (who may be yourself) for a set term (typically up to 20 years, or the beneficiary’s lifetime). The point is to defer and spread out capital gains taxes, but it doesn’t avoid them. After that set term has expired, any remainder within the Trust is distributed to charity, in full. 

This type of Trust is beneficial for individuals or couples with appreciated assets who want income, a charitable deduction, and to defer capital gains on the sale. The tax deduction covers only the present value of the charity’s remainder interest, at the end of the term.

It is important to consult a financial advisor or tax attorney for more information on this type of bequest, before doing anything. A CRT generally cannot be changed once it is formed, although some reserve the power to change the charitable remainderman, so it is crucial to utilize this type of Trust only when explicitly needed, and to get it right.

Charitable Lead Trust (CLT)

A CLT is an irrevocable Trust, more or less, the opposite of a CRT. The main purpose is to reduce gift and estate tax on what passes to family. In this instance, the charity receives income for whatever the lead period may be. Often this is either the lifetime of the Trustor or a set number of years. When the lead time expires, the remainder of the Trust then passes to the named beneficiaries.

Because this structure is more complex, it is also less common. People with higher net worth who want to reduce gift and estate tax may opt to utilize this type of Trust.

What is a Donor Advised Fund (DAF)?

A DAF is a giving structure that offers tax benefits to the giver and financial gain to the charity it funds. It can be funded during your lifetime, or at death through a Will, Trust, or beneficiary designation. Think of it as a savings account that you can put funds into. The gift you put into a DAF goes to a sponsoring charity, and you, the donor, recommend how those funds are distributed to eligible charities. When you contribute during your lifetime, you get an income tax deduction in the year of the contribution, subject to AGI limits and the new 0.5% AGI floor that applies beginning in 2026. A DAF funded at death does not produce an income tax deduction; instead, the gift qualifies for the estate tax charitable deduction.

Many families utilize DAFs because they have good tax implications, tend to be easier to utilize than other structures, and there is some flexibility with the types of assets that can be put into a DAF.

What is the “30-70 rule” for charities, and should I consider this when I leave a charitable gift?

The 30-70 rule is a preferential guide that many people utilize when determining where they want to donate charitably. In essence, it says that charities should spend no more than 30% of every dollar received on overhead and marketing, leaving 70% of the same dollar to go directly toward their cause.

Charity Navigator is a wonderful tool that provides transparency into how donor dollars are spent within charitable organizations. Review a charity’s financial transparency, governance, program spending, and demonstrated impact. Overhead and fundraising ratios can be useful in context, but they should not be used alone to evaluate effectiveness.

Is There a Maximum Amount You May Leave to a Charity?

There are no legal limits on the amount of money or assets you can leave to any specific charity. But it is important to work closely with a tax advisor to maximize your estate deductions. There are deduction limits in place for charitable giving during your lifetime. While you can give as much as you want to charity while alive, you may not be able to deduct all of it in a single year. (Lifetime gifts to charity do not use up your estate and gift tax exemption; only taxable gifts to individuals do). However, the estate tax charitable deduction is unlimited.

Questions to Think Through Before You Decide 

• What is our net worth?

• Do we need to limit our estate value for tax purposes?

• Which assets are most tax-efficient to leave to charity vs. to family?

• Does the charity need to receive the gift outright, or would a Trust or DAF serve the same goal with more flexibility?

• If the charitable gift is significant, is the family aware and on board?

FAQs

What is the best way to leave money to a charity?

It depends on your end goal. Are you an average generous person with assets under the Federal estate tax exemption? If so, a Will, Revocable Trust, or beneficiary designation is probably adequate. But maybe you are a high net worth individual with assets over the Federal estate tax exemption. If so, it’s important to work closely with a financial advisor, tax advisor, and estate planning and tax attorney to utilize the right tools for your philanthropic and financial goals.

Can you avoid estate taxes by donating to a charity?

Keep in mind that the Federal estate tax exemption in 2026 is $15 million for an individual, $30 million for a married couple (and this requires a portability election or credit shelter planning). A married couple may be able to use up to $30 million in combined exclusions, depending on prior gifts and appropriate planning, including portability or a credit-shelter trust where applicable. Georgia does not have a state estate tax. So, unless your estate is valued above those exemptions, federal estate tax generally would not be due based solely on the estate value if the applicable exclusion is sufficient. But if your estate exceeds that exemption, it’s important to work closely with a financial advisor, tax advisor, and estate planning and tax attorney to determine which tools limit your estate tax liability. And asset choice matters for income tax during your lifetime, even under the exemption. You may not be able to mitigate all estate tax liability, but you can likely lower it.

What happens if I leave everything to a charity?

Georgia has no elective share or forced heirship, so you may leave your assets to anyone you wish, subject to payment of valid debts, expenses of administration, and year’s support. Keep in mind Georgia has a year’s support law which allows a surviving spouse or minor children to claim assets to provide for one year of support. Although Georgia residents generally may leave their probate estates to charity, a surviving spouse or eligible minor children may have rights to year’s support that rank ahead of most debts and other claims against the estate. Nevertheless, if you have valid estate planning documents that clearly name a charity (or charities) to receive everything, then your executor or Trustee is required to follow your wishes. There may be a higher likelihood of your plan being contested if you leave everything to charity, especially if you haven’t prepared your loved ones for this outcome. But if your plan is clear and valid, what will happen is that a charity will receive all of your assets, any valid claims for year’s support and after any debts. They may engage a company to sell your tangible items like clothing and furniture, and then they would receive the proceeds from those sales.

How do I leave a bequest to a charity?

There are many ways to leave a charity a donation after your death. 1. In a Will; 2. In a Trust (including revocable living Trusts and irrevocable Trusts such as charitable remainder Trusts and charitable lead Trusts); 3. Donor Advised Funds – at death this would be funded utilizing a Will, Trust, or beneficiary designation; and 4. Beneficiary Designations.

Ready to Weave Charitable Giving into your Georgia Estate Plan?

Book a strategy session today to review your financial goals, select the most tax-efficient giving options for your assets, and craft a personalized plan that protects your legacy and supports the causes you care about most.