Charitable Giving in Your New York Estate Plan

Many New Yorkers want their estate plan to support a cause, a hospital, a synagogue or church, a university, or a local nonprofit. Charitable giving can also be a thoughtful response to New York’s estate tax, which in 2026 exempts estates up to $7,350,000 but applies a sharp cliff at $7,717,500. The comparison below walks through the main ways to give and what each accomplishes.

Option 1: A Charitable Bequest in Your Will

The simplest method is a bequest in a New York will executed under EPTL 3-2.1, a fixed dollar amount, a percentage of the estate, or whatever remains after family gifts. It costs nothing during your lifetime, is easy to change, and a charitable bequest is generally deductible for estate tax purposes, which can help an estate stay under the cliff. The trade-off is that the gift only happens at death and the will passes through Surrogate’s Court.

Option 2: Naming a Charity as Beneficiary

You can name a charity as the beneficiary of a retirement account or life insurance policy. This is one of the most tax-efficient gifts available, because a charity pays no income tax on retirement funds that would be taxable to your family. The asset passes outside probate, and you can change the designation at any time. The catch is that it must be coordinated with your other beneficiary forms so the rest of your plan stays balanced.

Option 3: A Charitable Trust

For larger or more strategic gifts, a charitable trust under EPTL Article 7 splits benefits between people and charity. A charitable remainder trust pays income to you or your family for a period, with the remainder going to charity. A charitable lead trust does the reverse, paying the charity first and returning assets to your heirs. These can reduce estate tax exposure and, in some cases, provide a lifetime income stream. They require professional administration and irrevocable commitment, so they suit donors with significant assets and clear goals.

Option 4: A Donor-Advised Fund or Foundation

A donor-advised fund lets you contribute now, take a deduction, and recommend grants over time with minimal administration. A private foundation offers maximum control and a family legacy but carries significant compliance burdens. For most New York families, a donor-advised fund delivers most of the benefit at a fraction of the cost.

Comparing the Options

A bequest is flexible and free but deferred. A beneficiary designation is the most tax-smart for retirement assets. A charitable trust delivers income and tax planning at the price of complexity. A donor-advised fund balances control and simplicity. The best choice depends on the size of your estate, whether you want lifetime income, and how much you want to give now versus at death.

Coordinating With Family and Tax Goals

Charitable gifts work best when integrated with the rest of your plan, your trustees, your beneficiary forms, and your exposure to the New York estate tax cliff. A well-placed charitable bequest can sometimes keep an estate below the threshold and protect more for both family and charity.

Talk to a New York Attorney

Charitable strategies interact with income tax, estate tax, and your family’s needs in ways worth getting right. A New York estate planning attorney can match the giving vehicle to your goals. Consult licensed New York counsel before establishing a charitable gift.