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By Bernard A. Krooks, Certified Elder Law Attorney

Special Guest Contributor: Amy C. O’Hara, Certified Elder Law Attorney

When you think about estate planning, your first thought might be about ensuring your loved ones are taken care of after you’re gone. But what if your estate plan could do more? What if it could support the causes you care about and help create a better world for future generations?

By incorporating sustainable and philanthropic goals into your estate plan, you can leave a lasting impact that reflects your values. Here’s how you can do it.

1. Charitable Giving Through Your Will or Trust

One of the simplest ways to give back is by leaving a bequest in your will or trust. This can be a set dollar amount, a percentage of your estate, or even specific assets (like real estate or stocks) that go to a nonprofit organization of your choice.

If you’re passionate about environmental conservation, you might leave a portion of your estate to organizations that plant trees, protect wildlife, or combat climate change. If education is important to you, you could support scholarships for underprivileged students.

2. Making Charitable Donations from Your IRA

If you have a traditional Individual Retirement Account (IRA), you can use it to make qualified charitable distributions (QCDs). This is a tax-efficient way to give to charity, especially if you’re over age 70½.

Here’s how it works:

Instead of taking the required minimum distributions (RMDs) that increase your taxable income, you can donate up to $100,000 per year directly from your IRA to a qualified charity.

The donation does not count as taxable income, which can lower your overall tax burden.

This strategy is especially beneficial for those who don’t itemize deductions, since it provides a tax advantage without requiring you to claim charitable contributions separately.

If you want to leave a legacy of giving, you can also name a charity as a beneficiary of your IRA. Since charities don’t pay income tax, they receive the full value of the gift, whereas individual heirs would have to pay taxes on withdrawals from a traditional inherited IRA.

3. Donor-Advised Funds (DAFs)

A Donor-Advised Fund (DAF) allows you to set aside funds for charitable giving while still having flexibility in choosing which nonprofits to support over time. It’s like having a personal foundation without the administrative burden.

DAFs can also be a great way to engage your family in philanthropy—your children or heirs can help decide which charities receive funds, continuing your legacy of giving.

4. Charitable Remainder Trusts (CRTs) and Charitable Lead Trusts (CLTs)

Certain trusts allow you to combine philanthropy with financial benefits for you and your heirs.

A Charitable Remainder Trust (CRT) provides income to you (or another beneficiary) for a set period, after which the remaining assets go to charity.

A Charitable Lead Trust (CLT) does the reverse—it provides income to a charity first, then passes the remaining assets to your heirs, often with tax advantages.

Both options allow you to support charitable causes while maximizing tax benefits.

5. Sustainable Investing in Your Estate Plan

If you want your investments to align with your values, consider Socially Responsible Investing (SRI) or Environmental, Social, and Governance (ESG) investing. These strategies ensure that your money supports companies that prioritize sustainability, ethical labor practices, and social responsibility.

6. Endowing a Family Giving Tradition

You can also incorporate philanthropy in your estate plan by fostering a tradition of giving within your family. You can:

Set up a family foundation to fund causes your family is passionate about.

Include charitable giving as part of your inheritance plan, encouraging beneficiaries to continue supporting meaningful causes.

Write an ethical will, a document sharing your values and philanthropic wishes, to inspire future generations.

7. Leaving a Green Legacy

If sustainability is a priority, there are ways to ensure your estate plan reflects your commitment to the environment including choosing a green burial or donating your body to science.

Start Planning Your Legacy Today

An estate plan isn’t just about distributing assets, it’s also about shaping the future. By integrating sustainable and philanthropic goals, you can make a meaningful impact long after you’re gone. 

Bernard A. Krooks, Esq., is a founding partner of Littman Krooks LLP. He was named 2021 “Lawyer of the Year” by Best Lawyers in America® for excellence in Elder Law and has been honored as one of the “Best Lawyers” in America since 2008. He was elected to the Estate Planning Hall of Fame by the National Association of Estate Planners & Councils (NAEPC). Krooks is past Chair of the Elder Law Committee of the American College of Trust and Estate Counsel (ACTEC). Mr. Krooks may be reached at (914-684-2100) or by visiting the firm’s website at www.littmankrooks.com.