How to Create a Lasting Legacy Through Charitable Giving in Your Estate Plan

When most people think about giving to charity, they picture a year-end donation or tossing spare change into a collection jar. But charitable giving doesn’t have to be a one-time act—it can be a powerful part of your legacy. One that reflects your values, supports the causes you care about, and brings long-term peace of mind to your family.

At Flagstaff Law Group, we believe estate planning is about more than legal documents. It’s about connection, care, and creating a plan that aligns with your purpose. For many of our clients, building charitable giving into their estate plan is a meaningful way to extend their impact well into the future.

Whether you’re a retiree supporting local nonprofits, a business owner committed to community reinvestment, or a parent hoping to model generosity for your children, here are three practical and intentional ways to include charitable giving in your estate plan—plus a clear breakdown of the benefits.

1. Leave a Gift to Charity in Your Will or Trust

One of the simplest ways to include charitable giving in your estate plan is to name a nonprofit organization as a beneficiary in your will or revocable living trust. You can leave a set amount, a percentage of your estate, or a specific asset.

Why this option works well:

• It’s easy to update or revise as your life and priorities change.

• It doesn’t require a complicated structure.

• You can personalize the gift to reflect your vision.

Quick tip: Be sure to use the charity’s full legal name. For example, if you’re donating to the Arizona Community Foundation, don’t just write “Arizona fund” or “local charity.” Clarity ensures your gift ends up exactly where you want it to go.

You can also specify how you want the funds to be used—whether for a general purpose or a specific program. Just make sure the charity can fulfill your request. If your instructions are too specific or outside their scope, they may have to decline the gift. It’s a great idea to check with the charity about any specific language they require or confirm any requests that may be unusual.

2. Name a Charity as a Beneficiary of Your Retirement Account

Many people don’t realize they can name a nonprofit as a beneficiary of their retirement account, such as an IRA or 401(k). This is one of the most tax-smart ways to give.

Why it’s a strategic move:

• Retirement accounts are tax-deferred. If passed to individuals, they’ll owe income tax on the distributions.

• Charities, on the other hand, are tax-exempt. That means they receive the full value of your gift—no deductions, no taxes.

• This move can also reduce the size of your taxable estate, which benefits your loved ones.

  
  

Quick tip: Retirement assets are often the best to leave to charity, while other assets—like real estate or brokerage accounts—are better left to heirs for tax purposes.

Important update:

The SECURE Act changed how retirement accounts are inherited. Most non-spouse beneficiaries must now withdraw the entire balance within 10 years of your death—resulting in a potentially large tax bill. Leaving those accounts to charity can bypass this issue entirely and allow your heirs to receive more tax-efficient assets.

3. Create a Charitable Remainder Trust (CRT)

If you have appreciated assets—like real estate, stocks, or a business interest—and want to generate income for yourself or a loved one while also supporting a cause, a Charitable Remainder Trust might be the right fit.

A CRT is a split-interest trust. That means:

• You (or someone you choose) receive income from the trust for a set period or for life.

• After that, the remainder goes to a charitable organization.

You avoid capital gains tax when the asset is sold, receive a charitable deduction upfront, and create a predictable income stream. It’s a win-win strategy.

Benefits of a Charitable Remainder Trust:

Case study:

A couple in Cottonwood used a CRT to transfer their vacation home. They avoided capital gains taxes, secured income for their retirement years, and arranged for the remainder to support a local nonprofit they loved.

A word of caution:

CRTs must follow specific legal and tax rules. They’re powerful tools, but they require thoughtful design and ongoing administration. We’ll help you decide if it’s a good fit for your goals.

Charitable Giving: It’s About More Than Money

Yes, charitable giving can bring tax advantages. But at its core, it’s about something bigger—expressing your values, creating meaningful impact, and leaving the world better than you found it.

At Flagstaff Law Group, we help you look at the full picture of your life and legacy. If giving is part of your story, we’ll help you build a plan that makes it easy, effective, and aligned with your goals.

Let’s Make It Easy

If you’re considering adding charitable giving to your estate plan, we’d love to help you get clear on your options. There’s no one-size-fits-all solution, and you don’t have to figure it out alone.

We’ll walk you through your choices and build a plan that supports the people and causes you care about most.

Schedule a Family Wealth Planning Session to take the first step toward your legacy. You don’t need to be wealthy to make a difference—just intentional.

Final Thoughts

Leaving a gift to charity—whether in a will, through a retirement account, or with a trust—is a powerful way to turn your values into a legacy. It’s also one of the most empowering steps you can take to shape the future.

Let’s talk about how to make it happen with clarity, care, and a plan that reflects what matters most to you.

Schedule a free discovery call with our team! 

This article is for educational purposes only and is not specific legal advice.  There is no substitute for consulting with an attorney about your specific circumstances.