Charitable Bequest

Charitable bequests at death or Lifetime Gifts reduce the value of the estate, thereby reducing estate taxes. They also provide an income tax deduction.

To receive the tax benefits, charitable contributions must meet the following requirements:

The contributions must be made to a qualified charity. The IRS publishes a list of qualified charities.
The contributions must be property, not time or services.
The contributions must exceed any compensation received by the donor. Only the amount in excess of the compensation received by the donor is
Provisions for testamentary donations must be made in the decedent’s will. The decedent's estate does not receive the tax benefits if the decedent's estate or beneficiaries make the transfer.
An appraisal must accompany a tax return showing donations of property over $5,000, although no federal gift taxes are payable on donations to qualified charities, regardless of the size of the donation.