Charitable Giving in Your Estate Plan

New York City runs on its institutions — the museum on Fifth Avenue, the hospital that treated a family member, the food pantry around the corner, an alma mater uptown. Many residents want to leave something to the causes that shaped their lives. Done thoughtfully, charitable giving can also reduce estate tax and create lasting impact. Done casually, it can fall apart or trigger family disputes.

Scenario: the Upper West Side couple’s promise

Ellen and David always told friends they would “leave something to the symphony.” But their plan only had a will leaving everything to each other, then to their children. They never wrote the gift down. When David passed, nothing went to the organization he loved — intent is not enough; the documents must say so. A single clear bequest clause would have honored the promise.

Simple ways to give under New York law

You do not need a complex structure to give meaningfully:

• A bequest in your will (EPTL §3-2.1): leave a fixed dollar amount, a percentage of the estate, or a specific asset. Percentage gifts adjust naturally as your estate grows or shrinks.
• Beneficiary designations: naming a charity on a retirement account is often the most tax-efficient gift, since charities receive those funds without the income tax an individual heir would owe.
• A residuary gift: direct what is left after family bequests to charity — a popular way to give without shortchanging loved ones.

Larger gifts and trust structures

For substantial giving, New York trust law (EPTL Art. 7) supports vehicles that blend family and charitable goals. A charitable remainder trust can pay income to you or your children for a term, then deliver the remainder to a NYC nonprofit. A charitable lead trust does the reverse — the charity receives payments first, then assets return to heirs. These are sophisticated tools requiring careful drafting and tax counsel, but for the right estate they can serve family and community at once.

Charitable giving and the New York estate tax cliff

Here is where charitable planning earns its keep for affluent New Yorkers. The 2026 New York estate tax exclusion is $7,350,000. But the state has a “cliff”: once an estate exceeds 105% of the exclusion — about $7,717,500 — the exemption vanishes and the entire estate is taxed, not just the excess. An estate sitting just over that cliff can face a painful result.

A charitable bequest is fully deductible for estate tax purposes. For an estate hovering near the cliff, a well-sized charitable gift can bring the taxable estate back under the threshold, preserving the exemption while supporting a cause you care about. This is precise work — the gift amount must be calculated against current numbers — but it can turn a tax liability into a legacy.

Make the gift durable

Name the organization precisely (legal name, not a nickname), confirm it can accept the type of asset, and consider whether you want the gift unrestricted or earmarked for a specific program. Overly rigid restrictions can leave a charity unable to use the money decades later.

Consult a New York attorney

Charitable giving is one of the few areas where doing good and reducing tax align — but only with accurate drafting and current numbers. A New York estate planning attorney can match the right giving structure to your family, your assets, and the state’s estate tax cliff.