Charitable Trusts

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You want to make a difference. You want to give back to the causes you care about, support your community, and leave a lasting legacy. A charitable trust can help you do all of that while also protecting your family’s financial future. At Slowik Estate Planning, located in Atlanta, Georgia, we help individuals and families build estate plans that reflect their values. If giving back is part of your story, a charitable trust may be the right tool to make that happen.

Table of Contents

What Is a Charitable Trust Under Georgia Law?

A charitable trust is a specific type of trust designed to benefit a charitable cause. Under Georgia law, a charitable trust is a trust in which the settlor provides that the trust property shall be used exclusively for charitable purposes. That word “exclusively” matters. Georgia law, as amended effective January 1, 2021, made this requirement clear under O.C.G.A. § 53-12-170, which is part of the Revised Georgia Trust Code of 2010.

So what counts as a charitable purpose? Under Georgia law, a “charitable purpose” means any charitable, benevolent, philanthropic, patriotic, or eleemosynary purpose for religion, health, education, social welfare, arts and humanities, environment, civic, or public interest. Think about it this way: if you want to fund scholarships, support a local hospital, preserve green space, or help a religious institution, a charitable trust could be the vehicle to do it.

Georgia’s trust law is found in Title 53, Chapter 12 of the Official Code of Georgia Annotated. Article 9 of that chapter, covering sections 53-12-170 through 53-12-175, governs charitable trusts specifically. These trusts are different from standard private trusts because they serve a public benefit. That public benefit is also why they receive favorable treatment under both Georgia and federal tax law.

One important feature of charitable trusts in Georgia is the role of the state’s attorney general. In all cases in which the rights of beneficiaries under a charitable trust are involved, the Attorney General or the district attorney of the circuit in which the major portion of trust property lies shall represent the interests of the beneficiaries and the interests of this state as parens patriae in all legal matters pertaining to the administration and disposition of such trust. This oversight exists to protect the public interest and ensure that charitable assets are used properly. It also means that setting up a charitable trust is not something you should do without experienced legal guidance.

If you are considering a charitable trust, speaking with an attorney at Slowik Estate Planning in Atlanta is a smart first step. We can review your goals and help you understand how Georgia law applies to your situation.

Charitable Remainder Trusts vs. Charitable Lead Trusts: Which One Is Right for You?

There are two main types of charitable trusts used in estate planning: charitable remainder trusts (CRTs) and charitable lead trusts (CLTs). Both can accomplish meaningful charitable goals, but they work in opposite ways. Understanding the difference helps you choose the right fit for your family.

A charitable remainder trust (CRT) is an irrevocable trust that generates a potential income stream for you, as the donor to the CRT, or other beneficiaries, with the remainder of the donated assets going to your favorite charity or charities. In simple terms, you or your loved ones receive income first, and the charity gets what is left at the end.

A charitable lead trust works the other way around. A charitable lead trust is an irrevocable trust designed to provide financial support to one or more charities for a period of time, with the remaining assets eventually going to family members or other beneficiaries. So the charity receives payments during the trust’s term, and your heirs receive the remaining assets when the trust ends.

Which one makes more sense for you? That depends on your priorities. If you need income now and want to leave something to charity later, a CRT may be the better choice. If you want to reduce your taxable estate and pass wealth to your children or grandchildren while also supporting charity, a CLT could be worth exploring. Both types of trusts can be made while the donor is alive (inter vivos) or upon death (testamentary).

Both trust types are irrevocable. That means once you create one, you cannot simply undo it. This is why careful planning matters before you commit. The team at Slowik Estate Planning works with Atlanta families to think through these decisions thoroughly. We look at your income needs, your estate size, your charitable goals, and your family’s needs before recommending a path forward.

It is also worth knowing how these trusts interact with your other estate planning documents, including your wills and other trust arrangements. A well-designed estate plan ties all of these pieces together in a way that makes sense for your life and your legacy.

Tax Benefits of Charitable Trusts and What Changed in 2026

One of the biggest reasons people set up charitable trusts is the tax benefit. These trusts can reduce your income taxes, lower your estate taxes, and even help you avoid capital gains taxes on appreciated assets. But the tax rules around charitable giving changed significantly in 2026, and you need to understand those changes before you act.

Let’s start with the good news for CRTs. With a CRT, you have the potential to take a partial income tax charitable deduction when you fund the trust, and the CRT’s investment income is exempt from tax. This makes a CRT especially useful if you own appreciated assets like real estate or stock that you want to sell. You may consider donating low-basis assets to the trust so that when sold, no income tax is generated to you and you eliminate the capital gains tax on the sale of the asset.

Now for the important 2026 update. The One Big Beautiful Bill Act, signed into law on July 4, 2025, introduced new limits on charitable deductions. For itemizers, there is a new 0.5 percent of adjusted gross income floor on charitable contribution deductions starting in 2026, and the 60 percent AGI limit on charitable contribution deductions was made permanent. What does this mean in plain terms? If you itemize your deductions, your charitable contributions are only deductible to the extent they exceed 0.5% of your adjusted gross income. For most people, this is a relatively small threshold, but it is still a change worth understanding.

For corporations, a new 1 percent floor on corporate charitable contributions is also effective starting in 2026. And for those who do not itemize, H.R.1, the One Big Beautiful Bill Act, made several changes to the tax rules for charitable contributions, including a new charitable contribution deduction for non-itemizers effective starting in 2026.

There is also good news for older donors. The ability of taxpayers age 70½ or older to make direct qualified charitable distributions (QCDs) to a charity from an IRA and not take any related required minimum distributions (RMDs) into AGI seems to be the clear winning strategy. The dollar limit is $111,000 for 2026. These rules interact with charitable trust planning in ways that can be very beneficial with the right setup.

Tax planning around charitable trusts is detailed and fact-specific. Slowik Estate Planning works closely with clients in Atlanta and across Georgia to make sure your charitable trust is structured to maximize your tax benefits under current law.

How Charitable Trusts Are Administered Under Georgia Law

Creating a charitable trust is only the beginning. Once the trust is in place, it needs to be properly managed and administered. Georgia’s Revised Trust Code of 2010 sets out detailed rules for how trusts must be run, and charitable trusts have their own layer of oversight that other trusts do not.

Under Article 11 of the Revised Georgia Trust Code (O.C.G.A. §§ 53-12-200 through 53-12-221), trustees have significant duties. They must act in the best interests of the trust’s beneficiaries, manage trust assets prudently, and keep accurate records. For charitable trusts, the “beneficiaries” include the public and the charitable organizations named in the trust.

Article 13 of the Trust Code (O.C.G.A. §§ 53-12-240 through 53-12-292) covers the administration of trusts more broadly. Trustees must follow the terms of the trust document, invest assets wisely, and account for all income and expenses. Article 16 governs trust investments under the Georgia Principal and Income Act, which means trustees must follow a prudent investor standard when managing trust assets.

For charitable remainder trusts specifically, the IRS also has annual filing requirements. Charitable remainder trusts must annually file Form 5227, Split-Interest Trust Information Return. Form 5227 reports financial activities, including the disposition of the trust’s assets, and accounts for current-year and accumulated trust income. Failing to file this form can create problems with the trust’s tax-exempt status.

The trust administration process can be complex. A trustee who makes mistakes can face personal liability under Article 14 of the Revised Georgia Trust Code, which covers breach of trust (O.C.G.A. §§ 53-12-300 through 53-12-308). This is why many families choose a professional trustee or work with an attorney to oversee administration.

At Slowik Estate Planning in Atlanta, Georgia, we help clients understand what trust administration involves before they commit to creating a charitable trust. We also assist trust beneficiaries in understanding their rights under Georgia law. Whether you are the person creating the trust or someone who will benefit from it, we are here to help.

Incorporating a Charitable Trust Into Your Broader Estate Plan

A charitable trust does not exist in a vacuum. It works best when it is part of a bigger estate planning picture. Your will, your other trusts, your retirement accounts, and your beneficiary designations all interact with each other. A charitable trust needs to fit into that larger framework in a way that makes sense for your family.

Think about what you own. Do you have a business, real estate, or a large investment portfolio? Do you have retirement accounts with significant balances? Each of these assets may be well-suited for funding a charitable trust, but each comes with its own rules. For example, you can donate cash, stocks, or non-publicly traded assets such as real estate, private business interests, and private company stock and become eligible to take a partial tax deduction. The tax treatment of each type of asset will vary, so the funding strategy matters.

You should also think about your family’s needs. If you have children or grandchildren who depend on your estate, a charitable trust must be balanced against their interests. Some families use a combination of a charitable trust and a life insurance policy (sometimes called a “wealth replacement trust”) to make sure heirs are not shortchanged while the charity still benefits. This kind of planning takes creativity and careful thought.

Georgia’s trust law also allows you to add assets to a trust over time. Under O.C.G.A. § 53-12-25, additions to trust property are permitted, which gives you flexibility as your financial situation changes. And if circumstances change dramatically, Article 3 and Article 4 of the Revised Georgia Trust Code (O.C.G.A. §§ 53-12-40 through 53-12-65) address how trusts may be modified or terminated under certain conditions, though charitable trusts carry additional restrictions.

Estate planning is not just about what happens when you die. It is also about how you live and what you leave behind. At Slowik Estate Planning, we help Atlanta families think through all of it, from pet guardianships to complex charitable giving strategies. Every plan is different because every family is different. Contact us today to start a conversation about what a charitable trust could mean for you and the causes you care about most.

FAQs About Charitable Trusts in Atlanta, Georgia

What is the difference between a charitable remainder trust and a charitable lead trust?

A charitable remainder trust pays income to you or your family first, and the remaining assets go to charity when the trust ends. A charitable lead trust works the opposite way: the charity receives payments during the trust’s term, and your family receives whatever is left at the end. Both are irrevocable, meaning you cannot change them after they are created. The right choice depends on whether your priority is current income for yourself or passing wealth to your heirs while also supporting a cause you care about.

Does Georgia law require a charitable trust to have a specific charitable purpose?

Yes. Under O.C.G.A. § 53-12-170 of the Revised Georgia Trust Code of 2010, a charitable trust must be used exclusively for charitable purposes. Georgia law defines charitable purposes broadly to include religion, health, education, social welfare, arts and humanities, the environment, and civic or public interest. The trust document must clearly state the charitable purpose, and the trust assets must be used in a way that serves that purpose.

Are there new tax rules for charitable giving in 2026 that affect charitable trusts?

Yes. The One Big Beautiful Bill Act, signed on July 4, 2025, introduced new rules effective in 2026. Individuals who itemize deductions can now only deduct charitable contributions to the extent they exceed 0.5% of their adjusted gross income. Corporations face a 1% floor on charitable deductions. However, qualified charitable distributions from IRAs remain a powerful strategy, with a 2026 limit of $111,000 for taxpayers age 70½ or older. These changes make it even more important to plan carefully with an attorney before funding a charitable trust.

Who oversees charitable trusts in Georgia?

In Georgia, the Attorney General or the district attorney of the circuit where most of the trust property is located represents the interests of the charitable beneficiaries and the state in all legal matters related to the trust. This means the state has an active role in making sure charitable trust assets are used properly. Trustees have significant legal duties under the Revised Georgia Trust Code, and failing to meet those duties can result in personal liability under Article 14 of the Trust Code, which covers breach of trust.

Can I change or revoke a charitable trust after it is created?

Generally, no. Both charitable remainder trusts and charitable lead trusts are irrevocable. Once you fund the trust and sign the documents, you cannot simply take the assets back or change the terms on your own. Georgia’s Revised Trust Code does allow for trust modification or termination under limited circumstances, addressed in Articles 3 and 4 of the Code, but these situations are narrow and usually require court involvement. This is why it is critical to work with an attorney before creating a charitable trust to make sure the terms reflect your long-term goals.

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