Charitable Giving Through Your Estate Plan: Smart Ways to Maximize Tax Benefits
The holiday season is a time of giving—and charitable gifts can be one of the most meaningful parts of an estate plan. Beyond supporting causes you care about, charitable strategies can also reduce estate taxes, leaving more for your heirs.
Ways to Include Charitable Giving
- Direct Bequests in a Will or Trust
Simple and straightforward: leave a gift of money, property, or a percentage of your estate to a nonprofit. - Beneficiary Designations
Naming a charity as the beneficiary of a retirement account can be highly tax-efficient, since charities don’t pay income tax on those assets. - Charitable Remainder Trusts
Provide income to you or your family during your lifetime, with the remainder going to a charity. This can provide tax benefits while supporting your loved ones and your favorite cause.
Why It Matters in Washington and Oregon
Both states have estate tax thresholds that families may unexpectedly exceed. Washington’s threshold is currently $3,000,000 and Oregon’s threshold is currently $1,000,000. Charitable gifts can help reduce estate tax liability while making a lasting impact.
A Legacy Beyond Money
Charitable planning is about more than taxes. It’s about passing on your values. When you include charitable giving in your estate plan, you create a legacy that reflects what mattered most to you in life. And, you can instill your values of giving and supporting what you care about for those you leave behind.
Want to explore your options? Schedule a consultation with Pettis Webber Pacific today.