If you are a charitable person who likes to give to the unfortunate or to causes you believe in, then the chances are pretty good you would like one of your final acts on this earth to be giving to charity. You do have the ability to include a donation in your estate plan in California. However, you want to plan any charitable giving carefully to avoid any issues for your heirs or in the execution of the donation.
Fidelity explains that you have the right to give to a charity in your estate plan or will. However, you should keep in mind that your estate must also pay off debts you had at death. You need to make sure that you deduct your debts from your assets so you know how much money you have left to give. You do not want to leave too much to a charity so your estate is left in the red.
One of the perks of giving to charity from your estate is that it helps to reduce tax liabilities. Charitable giving is tax free. It lowers your estate value, which in turn lowers the taxes on it. If you give out of your retirement, it has even more tax benefits and can save your estate a lot of money.
However, charitable giving could lead to issues with heirs if they do not like the amount of money you plan to donate. You want to talk about it with them. If you have concerns, you may want to create a trust for the charity, so it can get the money you want it to have. This information is for educational purposes. It is not legal advice.