As nearly $9 trillion will be inherited by families over the next decade, the opportunity for transformative philanthropy has never been greater. Yet legacy giving remains a largely underutilized tool among many households and smaller nonprofits.

By weaving together values-driven intent with effective structures and tax strategies, donors can ensure their support extends their impact beyond their lifetime. This article introduces five “legacy levers” to help you design a resilient, purpose-driven estate plan.

Whether you’re just beginning to explore legacy gifts or refining an existing plan, pulling each lever can unlock new possibilities for your family and favorite causes.

Lever 1: Values & Intent

The foundation of every strategic giving plan is a clear articulation of core philanthropic values and long-term intent. Begin by asking:

• What causes resonate most deeply with my life’s purpose?
• Which communities or issues will benefit from sustained support?
• How can my legacy reflect both personal convictions and family heritage?

Draft a concise philanthropic mission statement, then align all giving vehicles and documents to that vision. Families often discover that early engagement around shared values fosters unity and ensures that gifts remain meaningful across generations.

Lever 2: Vehicles & Structures

Choosing the right estate vehicle is critical to executing your legacy. Key options include:

• Direct charitable bequests in wills or revocable trusts
• Beneficiary designations on retirement accounts and insurance policies
• Donor-advised funds with successor advisors
• Charitable remainder trusts (CRTs) and charitable lead trusts (CLTs)

Below is a comparison of these primary tools:

Each structure addresses different objectives. By naming charities as beneficiaries and designating successors, you ensure a seamless transition of philanthropic assets when the time comes.

Lever 3: Tax & Timing

Strategic timing can significantly enhance your estate plan’s effectiveness. Consider:

• Transferring high-growth assets while retaining lifetime income through a CRT.

• Leaving pre-tax retirement accounts to charity and step-up assets to family.

In U.S. law, charitable bequests benefit from an unlimited estate tax charitable deduction, effectively removing those assets from your taxable estate. For retirement accounts, charities pay no income tax on distributions, whereas heirs would face ordinary income rates. By combining timing tactics and vehicle choices, you create more tax-efficient allocation of assets for both heirs and nonprofits.

Lever 4: Family Engagement

Engaging family members early fosters shared commitment and smooth succession. Best practices include:

• Hosting dedicated philanthropic planning sessions
• Documenting roles for successor advisors in DAFs and trusts
• Providing educational resources about nonprofit operations and impact measurement

Transparency around legacy goals encourages open discussion, so each generation feels ownership of the plan. Many families establish a “philanthropic council” to review grant proposals and legacy documents, ensuring a collective vision that endures.

Lever 5: Governance & Stewardship

An effective legacy plan includes formal governance to preserve your intent and protect charitable assets. Key elements:

• A written governance policy outlining decision-making authority and approval processes.

• Appointment of independent trustees or committee members with relevant expertise.

• Defined grantmaking criteria and reporting protocols to monitor outcomes and financial health.

This stewardship framework transforms a static document into a living legacy, ensuring that grants are evaluated, adapted, and aligned with your mission for decades to come.

Putting Levers into Action

By integrating these five levers—values & intent, vehicles & structures, tax & timing, family engagement, and governance & stewardship—you can build a legacy that truly reflects your values and maximizes impact.

Here are practical steps to get started:

• Assess your philanthropic goals and key assets with an advisor.
• Draft or update estate documents, naming charities and successor advisors.
• Implement tax and timing strategies for retirement accounts and appreciated assets.
• Engage family members through workshops and council meetings.
• Establish governance policies, trustees, and reporting mechanisms.

Review your plan every three to five years or when significant life changes occur. With thoughtful design and active stewardship, each legacy lever you pull today will resonate for generations, turning your values into enduring change.