Orange County California

Trust Attorneys


As times passes, your estate planning goals may change. One example of a change in priorities is to make provisions for charitable giving. Whether the charity of your choice is located in Orange County or elsewhere, your estate plan can be modified in order to accomplish this goal. An experienced estate planning attorney will walk you through the process of updating your plan.

Charitable Giving Through a Retirement Account

Now that you have decided to update your estate plan in order to make gifts to charity, your next step is to decide which assets should be used to accomplish your goals. One option to consider is using your retirement assets. These assets, which are among the most highly taxed in your estate, may be good candidates—they may positively affect taxes.

By leaving the assets to charity, you can accomplish the following:

  1. It may increase the overall impact of your bequest to the charity. How? As the beneficiary of a retirement account, the charity does not have to pay income taxes on your donation.
  2. It may decrease the overall estate tax that your family owes after you pass.  Since your assets will pass directly to the charitable organizations and not in some other manner, your estate is eligible for a federal estate tax charitable deduction equal to the value of the account.

A crucial aspect to using retirement accounts in order to accomplish charitable giving goals is to ensure that your beneficiary designations are up to date. It is important to have these designations reviewed by your attorney in order to ensure that it is handled properly. Interested in learning more helpful tips about modifying an estate plan? We encourage you to sign up for our free newsletter today!

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