Last updated: October 2026
A charitable bequest is a gift to charity in your will, living trust or beneficiary designation that takes effect at your death. It can be a fixed amount, a share of what remains, a specific asset, or a formula tied to tax values. Federal law allows an unlimited estate tax deduction for qualifying charitable bequests, and California currently imposes no estate tax. Good drafting names each charity precisely and provides alternates. Bay Legal drafts the gift, and your CPA advises on the tax effects.
Charitable bequest: a gift to a charity that takes effect at death under a will, a trust or a beneficiary designation.
Charitable bequests are the simplest tool covered on our charitable estate planning page.
What kinds of charitable bequests are there?
| Type | How it works | Good to know |
|---|---|---|
| Specific amount | A set dollar gift, such as $25,000 | Paid before the residue is divided |
| Specific asset | A named property, account or collection | If you sell the asset before death, the gift may fail |
| Share of the residue | A percentage of what remains after debts and other gifts | Grows or shrinks with the estate |
| Contingent gift | Charity takes only if family members do not survive you | Common in plans for people without close heirs |
| Formula or defined-value gift | Charity receives any value above a set amount | Used with hard-to-value assets; needs an appraiser |
| Beneficiary designation | Charity is named on an IRA, life insurance policy or payable-on-death account | Passes outside probate |
A beneficiary designation is valid even though it does not follow the formal rules for signing a will (Probate Code section 5000). In California, a spouse’s community property interest and federal rules for employer plans may require the spouse’s written consent before naming a charity.
How do I leave a gift to charity in my will or trust?
- Identify the charity exactly. Use its full legal name, address and federal tax identification number.
- Choose the form of gift. A fixed amount, a share of the residue, a specific asset or a contingent gift.
- Name alternates. Say who receives the gift if the charity has merged, closed or refuses it.
- Coordinate beneficiary designations. Make sure IRA, insurance and account designations match the plan.
- Tell your executor or trustee. Leave a note of the gift and the charity’s contact information.
- Review periodically. Update the plan when charities change or your goals shift.
How do charitable bequests affect federal estate tax?
Bay Legal does not provide tax advice. As general background, a bequest to a qualifying charity is fully deductible for federal estate tax, with no percentage cap (IRC section 2055). The gift must not be subject to a power or condition that could divert it, unless that chance is so remote as to be negligible (Treas. Reg. section 20.2055-2). A surviving spouse’s income interest in a charitable remainder trust can qualify for the marital deduction while the remainder qualifies for the charitable deduction (section 2056(b)(8)). For 2026, the federal estate tax exclusion is $15,000,000 per person, so many estates owe no federal estate tax at all. Your CPA should confirm the effect for your estate.
What are formula and defined-value clauses?
A formula clause sends charity whatever value exceeds a set dollar amount, so that if the IRS later raises the value of a gift, the extra goes to charity instead of creating tax. Federal appeals courts have upheld charitable deductions under these clauses (Estate of Petter (9th Cir. 2011); Succession of McCord v. Commissioner (5th Cir. 2006) 461 F.3d 614). The IRS still rejects similar dollar-value clauses that do not involve charity (IRS Action on Decision 2012-04). These clauses are technical and should be drafted with an appraiser and your CPA.
What happens if the charity no longer exists?
California’s anti-lapse statute substitutes a deceased relative’s descendants for a failed gift, but it does not apply to charities (Probate Code section 21110). Instead, a court may apply cy pres and redirect the gift to a similar charitable purpose if you had a general charitable intent (Estate of Faulkner (1954) 128 Cal.App.2d 575). That takes a court proceeding. Naming alternate charities, and saying that a successor organization may take, avoids it.
When does the Attorney General get involved?
In probate, the Attorney General receives notice when a will creates a charitable trust without a California-resident trustee, or leaves property for charity without naming a specific recipient (Probate Code section 8111). In trust proceedings, notice is required when a petition concerns a charitable trust (section 17203). Since 2025, the Attorney General does not waive the right to object to a settlement that harms a charitable gift by skipping a mediation or settlement conference (section 1209).
Frequently Asked Questions
Can I leave my IRA or life insurance to charity?
Yes. You name the charity on the account’s beneficiary designation form, and the gift passes outside probate. Under Probate Code section 5000, the designation is valid without will formalities. If the account includes community property, or it is an employer plan, your spouse may need to consent in writing before you name a charity.
Do charitable bequests reduce California taxes?
California currently imposes no estate, inheritance or gift tax, so there is no state estate tax to reduce. Charitable bequests matter for the federal estate tax, where a gift to a qualifying charity is fully deductible under IRC section 2055. Your CPA can tell you whether your estate is large enough for that to matter.
Does the undue influence presumption apply to a gift to my church or charity?
No. California presumes certain gifts to the person who drafted a will or trust resulted from undue influence, but Probate Code section 21382 excludes gifts to tax-exempt 501(c)(3) organizations and public entities. The exclusion covers the charity itself, not a personal gift to someone affiliated with it.
Related Questions
What is a residuary bequest?
A residuary bequest gives a share of whatever remains in your estate after debts, expenses and specific gifts are paid. Leaving a percentage of the residue to charity lets the gift rise or fall with the size of the estate.
Should I name alternate charities?
Yes. California’s anti-lapse statute does not save a failed gift to a charity, so a gift to a charity that has closed may require a court proceeding unless your will or trust names an alternate.
Can I combine a gift to my spouse and a gift to charity?
Yes. A charitable remainder trust can pay your surviving spouse for life and then pass to charity. Under IRC section 2056(b)(8), the spouse’s interest and the charity’s remainder can both be deductible.
About the attorney
Sivendra Ganesh Maraj handles estate planning at Bay Legal, including charitable gifts in clients’ wills and living trusts. Sivendra works with clients’ CPAs and financial advisers so the gift language 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 a charitable bequest
If you want to include a charity in your will or trust, gather each charity’s legal name and tax identification number and decide what form of gift you prefer. To discuss a charitable bequest, 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.