Are There Ways to Include Charitable Giving in an Illinois Estate Plan?

 Posted on July 29, 2025 in Estate Planning

You can include charitable giving in your Illinois estate plan. Whether you want to support a nonprofit, a religious institution, a school, or a medical organization, there are many tools available to help you donate part of your estate to causes that matter to you. Planning ahead allows you to leave a meaningful legacy while potentially reducing taxes. An Oakbrook Terrace, IL estate planning lawyer can guide you through the process and ensure your plan reflects both your personal and financial goals.

How Do You Include Charitable Giving in Your Illinois Estate Plan?

If you live in Illinois, there are several ways to incorporate charitable contributions into your estate plan. Your attorney can help you choose the best option based on the size of your estate, your long-term goals, and any religious or personal values you wish to honor. Some common ways to include charity in your estate plan include:

• Charitable bequests in a will: You can name a charity as a beneficiary and direct a specific dollar amount, percentage of your estate, or specific property to go to that organization.

• Revocable living trusts: These trusts can hold charitable gifts and distribute them after your death while avoiding probate and keeping your affairs private.

• Charitable remainder trusts (CRTs): These allow you to provide income to your beneficiaries during their lifetime, with the remainder going to a charity after their passing.

• Beneficiary designations: You can name a charitable organization as a beneficiary of a life insurance policy, IRA, or 401(k), allowing for a direct transfer outside of probate.

• Donor-advised funds or private foundations: These are more complex tools suited for larger estates and families interested in long-term, hands-on charitable giving.

Choosing the right option depends on your values, tax planning needs, and whether you want to make an immediate or future impact.

What Are the Benefits of Including Charitable Giving in an Estate Plan in Illinois?

Including charitable giving in your estate plan offers both financial and emotional benefits. One key advantage is the ability to reduce your federal estate tax burden. Under 26 U.S. Code § 2055, qualified charitable gifts are deductible from your gross estate for federal estate tax purposes. In Illinois, 755 ILCS 5/4-1 allows wills to direct gifts to charitable organizations, and 760 ILCS 55/5 under the Charitable Trust Act ensures such trusts are properly administered and monitored by the state.

On a personal level, charitable giving can help ensure your legacy reflects your faith, beliefs, and values. It also helps avoid conflicts among heirs by clearly allocating a portion of your estate to non-family beneficiaries. You can fund scholarships and support relief organizations, using estate-based charitable gifts to allow your generosity to continue after your lifetime.

Talk to an Oakbrook Terrace, IL Estate Planning Attorney Today

Including charitable giving in your estate plan is a powerful way to make a lasting impact. At Farooqi & Husain Law Office, we are proud to offer tailored legal guidance rooted in both U.S. law and Islamic principles. Attorney Naveed S. Husain couples his estate planning experience with deep knowledge of Islamic family and inheritance law, helping Muslim families across Chicago design faith-compliant plans.

Attorney Ausaf Farooqi is also one of the few Muslim attorneys who understand both Islamic personal law and American legal systems, providing culturally informed and legally sound advice. If you are ready to begin or revise your estate plan, contact our DuPage County, IL estate planning attorneys at 630-909-9114 today.