LEGACY INSIGHTS & ARTICLES

For most of your career, the objective was simple: win the "Accumulation Game." You saved, invested, and watched your portfolio grow. But as you enter retirement, the focus shifts from how much you have accumulated to how much significance your wealth creates.

At Chamberlin, we view traditional Estate Planning as the legal hardware — the Wills, Trusts, and Powers of Attorney designed to transfer physical assets. Legacy Planning, on the other hand, is the software. It’s the intentional strategy that gives you total control over how, when, and to whom your assets are distributed, ensuring your core values, charitable mission, and tax strategy work in complete harmony.

A foundational pillar of a true Legacy Plan is civic engagement and charitable giving — having the ability to support the causes you care about while you are alive and leaving a lasting imprint on your community after you pass away.

American Generosity: By the Numbers

Americans have a long-standing culture of generosity, but many retirees do not realize just how much impact individual giving has across the country:

• •  Over $600 Billion Given Annually: Total U.S. charitable giving reached a record $617.2 billion, surpassing the $600 billion mark for the first time.
• •  Individuals Drive the Engine: Individual donors account for 64% ($394.2 billion) of all charitable contributions, outpacing corporate and foundation giving combined.
• •  Retirees Lead the Way: Baby Boomers contribute over 43% of all charitable giving in the United States, with over 70% actively supporting local community causes or non-profits.
• •  Broad Community Engagement: Over 77% of U.S. adults engage in some form of charitable behavior annually, through direct monetary gifts, donating goods, or volunteering time.

Despite this generosity, many households pay far more in avoidable income and inheritance taxes than necessary — money that could otherwise be directed toward their families or favorite charities.

3 Strategic Ways to Build Giving into Your Legacy Plan

Integrating charitable giving into your financial plan isn't just a feel-good gesture; it’s a powerful, tax-optimized wealth strategy. By coordinating your tax and legal planning, you can defeat "Uncle Sam" and retain total control over your legacy.

1. Utilize Qualified Charitable Distributions (QCDs) from your IRA

If you are age 70½ or older, you can transfer up to a certain amount every year directly from a Traditional IRA to a qualified 501(c)(3) charity.

• The Benefit: The distribution counts toward your Required Minimum Distribution (RMD) but is excluded from your taxable income. This prevents "Tax Spikes" that can artificially push you into higher tax brackets or trigger Medicare IRMAA surcharges.

2. Establish a Donor-Advised Fund (DAF) or Charitable Trust

A Donor-Advised Fund acts as a dedicated charitable "well." You can donate appreciated assets (like stock or real estate), take an immediate tax deduction, and grant out the funds to causes over time. For larger estates, a Charitable Remainder Trust (CRT) allows you to receive an income stream for life, with the remaining principal passing tax-free to your chosen charity.

3. Strategic Beneficiary Designation (Pre-Tax vs. Tax-Free Assets)

When passing wealth to heirs, asset location matters. Leaving a Traditional IRA or 401(k) to children can subject them to a high tax burden under the 10-Year SECURE Act rule. Instead, designate charities as beneficiaries of pre-tax accounts (since charities pay 0% income tax), while directing tax-free assets — like Roth IRAs or life insurance — to your children and grandchildren.

* As with all financial decisions, these strategies aren't right for everyone. Consult your holistic planner, tax professional and/or estate planning advisor before making any concrete moves.

From Accumulation to Significance

Your life’s work is more than just a line item on a balance sheet. Without proactive planning, Uncle Sam becomes an involuntary partner in your estate. By aligning your financial hardware with holistic legacy software, you ensure every dollar you’ve worked for serves a purpose you choose.

Let’s Talk

Ready to start looking at your legacy plan, and how it fits into a holistic plan for your retirement years? We’re here to help. Set up a free, no-obligation, 20-minute strategy session with one of our trained and certified Legacy Guides today, and they’ll answer any questions you have and help you take stock of your wants, worries, needs and goals. You’ll even get a free copy of our new book, “The Wells of Wealth System,” which describes our holistic approach to planning in a more in depth and entertaining way. Schedule your call with Chamberlin Legacy today.

Citations

AmeriCorps & U.S. Census Bureau. (2024). Volunteering and civic life in America: Current population survey civic engagement supplement. U.S. Government Publishing Office. https://americorps.gov/about/news/reports/civic-engagement-supplement

Gallup. (2025). Charitable giving and volunteerism in the United States [Annual civic engagement study]. Gallup Historical Trends. https://news.gallup.com/poll/1662/charitable-giving-volunteering.aspx

Giving USA Foundation. (2026). Giving USA 2026: The annual report on philanthropy for the year 2025. Indiana University Lilly Family School of Philanthropy.

Kindsight. (2025). Generational philanthropy and community engagement report. Kindsight Research Division.

REN Inc. (2025). Generational giving trends report: How baby boomers shape American philanthropy. REN Philanthropic Solutions.

Internal Revenue Code, 26 U.S.C. § 408(d)(8) (2023). Individual Retirement Accounts: Distributions for charitable purposes. Internal Revenue Service. https://www.irs.gov/retirement-plans/plan-sponsor/qualified-charitable-distributions

Hoyt, C. R. (2016). Family and charitable planning with retirement accounts (Supplemental Handout). The Dallas Foundation. https://www.dallasfoundation.org/filesimages/Publications/Hoyt_Supplemental_Handout.pdf

Internal Revenue Service. (2024). IRS announces 2024 IRA and pension limit adjustments (Notice 2023-75). U.S. Department of the Treasury.

Andreoni, J. (2018). The benefits and costs of donor-advised funds. Tax Policy and the Economy, 32(1), 1–44. https://doi.org/10.1086/697137

Heist, H. D., & Vance-McMullen, D. (2019). Understanding donor-advised funds: How grants flow during recessions. Nonprofit and Voluntary Sector Quarterly, 48(5), 1066–1093. https://doi.org/10.1177/0899764019856118

Internal Revenue Code, 26 U.S.C. § 170(b)(1)(A) & § 170(e) (2022). Charitable, etc., contributions and gifts: Percentage limitations. Internal Revenue Service. https://www.irs.gov/charities-non-profits/donor-advised-funds

Horneff, V., Maurer, R., & Mitchell, O. S. (2021). Do required minimum distribution 401(k) rules matter, and for whom? Insights from a lifecycle model. SSRN Electronic Journal, Working Paper No. 28490. https://doi.org/10.2139/ssrn.3789278

Internal Revenue Service. (2022). Required minimum distributions for inherited retirement accounts under the Setting Every Community Up for Retirement Enhancement (SECURE) Act (Notice 2022-53). U.S. Department of the Treasury. https://www.irs.gov/ir-2022-181