Last updated: October 2026
Charitable estate planning means building gifts to charity into your will, trust or beneficiary designations so they fit the rest of your plan. In California, the main tools are charitable bequests, charitable remainder and lead trusts, donor-advised funds, private foundations, IRA gifts, conservation easements and restricted endowment gifts. California currently imposes no estate, inheritance or gift tax, so most tax effects are federal. Bay Legal drafts the legal documents and works alongside your CPA or tax adviser, who handles the tax consequences.
Charitable estate planning: arranging gifts to charity, during life or at death, within an estate plan through wills, trusts, beneficiary designations or gift agreements.
Which charitable giving tools fit an estate plan?
Each tool trades off simplicity, control and timing differently. Many plans combine two or more.
| Tool | How it works | Often used when |
|---|---|---|
| Charitable bequest | A will or trust leaves a set amount, a share or a specific asset to charity at death | You want a simple gift that can be changed until death |
| Charitable remainder trust | Pays you or family an income stream for life or up to 20 years; the rest goes to charity | You own appreciated assets and want income from them |
| Charitable lead trust | Pays charity for a term; the rest then passes to family | You want to support charity now and pass assets to heirs later |
| Donor-advised fund | An account at a sponsoring charity; you recommend grants over time | You want a simple vehicle without running an organization |
| Private foundation | A separate charitable organization your family controls | You want long-term family control and are prepared for annual compliance |
| IRA charitable gift | A direct distribution from an IRA to charity, or naming charity as account beneficiary | You are 70½ or older, or want retirement assets to go to charity |
| Conservation easement | A permanent restriction on land development held by a land trust or agency | You own land you want preserved |
| Endowment or restricted gift | A gift agreement directing how a charity uses or invests the gift | You want a named fund or a lasting purpose |
How does California law treat charitable gifts?
California currently imposes no estate, inheritance or gift tax (Revenue and Taxation Code section 13301). The Attorney General supervises charitable trusts and protects charitable assets (Government Code section 12598). A charitable lead trust must register with the Attorney General’s Registry of Charitable Trusts within 30 days after it first receives property. A charitable remainder trust registers once the charity’s interest becomes a present interest (section 12585).
In probate, the Attorney General must receive notice when a will creates a charitable trust without a California-resident trustee, or leaves property for charity without naming a recipient (Probate Code section 8111). A court cannot modify a charitable trust unless the Attorney General is a party (Government Code section 12591).
If a named charity no longer exists or refuses a gift, California’s anti-lapse statute does not apply, because a charity is not a relative (Probate Code section 21110). Courts instead apply cy pres, redirecting the gift to a similar charitable purpose when the donor had a general charitable intent (Estate of Faulkner (1954) 128 Cal.App.2d 575). Naming alternate charities avoids that uncertainty.
What federal tax rules apply to charitable gifts?
Bay Legal does not provide tax advice. The rules below are general background; your CPA or tax adviser should confirm how they apply to you.
- Estate tax. Gifts to qualified charities at death are fully deductible for federal estate tax (IRC section 2055). For 2026, the federal estate and gift tax exclusion is $15,000,000 per person, indexed for inflation starting in 2027 (section 2010).
- Income tax. Lifetime gifts are deductible within limits that depend on what you give and to whom, generally from 20% to 60% of adjusted gross income, with a five-year carryover (section 170(b)).
- Changes starting in 2026. Federal law now disallows itemized charitable deductions up to 0.5% of income, allows a limited deduction for people who do not itemize, and caps the benefit of itemized deductions for the top tax bracket (sections 170 and 68).
- California differences. California does not follow the 2026 federal changes and limits charitable deductions to 50% of federal adjusted gross income (Revenue and Taxation Code section 17201).
- Appraisals. Noncash gifts over $5,000 generally require a qualified appraisal (IRC section 170(f)(11)).
How does Bay Legal build charitable gifts into a plan?
- Set goals. Identify the charities, the causes and how much of your estate you want to give, now or at death.
- Choose the tools with your advisers. Compare a simple bequest, a trust, a fund or an IRA gift with your CPA or financial adviser.
- Draft the documents. Your will or trust, a charitable trust agreement, beneficiary designations or a gift agreement, with alternate charities named.
- Fund and retitle. Transfer assets into any trust and confirm beneficiary designations match the plan.
- Register and report. Charitable trusts may need Registry filings and annual federal returns; Bay Legal coordinates these with your CPA.
- Review periodically. Update the plan when charities merge, your goals change or the law changes.
Who should consider charitable estate planning?
- People who own appreciated stock, real estate or a business interest
- IRA owners age 70½ or older who give to charity each year
- People without close heirs, or with specific charitable goals
- Families who want to involve children or grandchildren in giving
- Landowners who want land protected from development
Frequently Asked Questions
Does California have an estate tax?
No. California currently imposes no estate, inheritance or gift tax under Revenue and Taxation Code section 13301. A federal estate tax can still apply to larger estates. A gift to a qualified charity at death is fully deductible for federal estate tax purposes, so charitable bequests can reduce or eliminate federal estate tax.
Can I leave part of my living trust to charity?
Yes. A trust can leave a fixed amount, a percentage or a specific asset to one or more charities when you die. You can change those gifts while the trust is revocable. Name the charity by its legal name and tax identification number, and name an alternate in case it no longer exists.
What happens if the charity in my will no longer exists?
California’s anti-lapse statute does not save a gift to a charity. Courts may redirect the gift to a similar charitable purpose under the cy pres doctrine if you had a general charitable intent, but that requires a court proceeding. Naming alternate or successor charities in your will or trust avoids the problem.
Is a donor-advised fund or a private foundation better?
It depends on how much control you want. A donor-advised fund is simpler, costs less and has higher deduction limits, but the sponsoring charity has final say over grants. A private foundation gives your family control but requires annual filings and must follow federal self-dealing and minimum-distribution rules. Your CPA should compare the tax effects.
Can I give to charity directly from my IRA?
Yes, if you are 70½ or older. A qualified charitable distribution moves money from your IRA directly to a qualified charity, up to an annual limit the IRS sets, and can count toward your required minimum distribution. It cannot go to a donor-advised fund. California follows the federal rule.
Related Questions
What is the Registry of Charitable Trusts?
It is the California Attorney General’s office that registers and monitors charities and charitable trusts. Under Government Code section 12585, most charitable trusts must register and then file annual reports.
What is a qualified appraisal?
It is a written valuation by a qualified appraiser that federal law requires for most noncash charitable gifts over $5,000. Cash and publicly traded securities are exempt from the requirement.
What is the section 7520 rate?
It is a monthly IRS interest rate used to value charitable trust interests, such as the remainder in a charitable remainder trust. A higher or lower rate changes the size of the charitable deduction.
Does the Attorney General get notice of my charitable bequest?
Sometimes. Under Probate Code section 8111, notice is required when a will creates a charitable trust without a California trustee or leaves property for charity without naming a specific recipient.
About the attorney
Sivendra Ganesh Maraj handles estate planning at Bay Legal, including wills, living trusts and charitable gifts built into a client’s plan. Sivendra works with clients’ CPAs and financial advisers so the legal documents and the tax planning fit together. Charitable planning is part of Bay Legal’s estate planning practice.
Talk to a California estate planning attorney about charitable giving
If you want to include a charity in your estate plan, list the charities you support and the assets you are considering giving. To discuss charitable estate planning, call the office nearest you or email intake.
Bay Legal, P.C. — serving California statewide
Northern California office
667 Lytton Ave Ste 3, Palo Alto, CA 94301
(650) 668-8000
Southern California office
3211 Cahuenga Blvd W Ste 212, Los Angeles, CA 90068
(213) 668-8000
Intake: intake@baylegal.com
Fax: (650) 963-0041
Website: https://baylegal.com
This page is general information about California law and does not constitute legal advice or create an attorney-client relationship. For advice on your specific situation, contact a licensed California attorney.