Sandy Springs Estate Planning for Charitable Giving and Foundations

Sandy Springs residents who want to leave a lasting mark on their community have more tools available today than ever before. Whether your goal is to support a local cause near Roswell Road, fund scholarships for Atlanta students, or endow a foundation that carries your family name for generations, charitable giving can be built directly into your estate plan. At Slowik Estate Planning, located in Atlanta, Georgia, we help clients across Sandy Springs and the surrounding metro area build estate plans that honor both their families and their values. This page explains the main vehicles, the governing laws, and the 2026 tax changes you need to know before making any major charitable decisions.

Table of Contents

• Why Charitable Giving Belongs in Your Estate Plan
• Charitable Remainder Trusts: Income for You, a Legacy for Others
• Charitable Lead Trusts: Give First, Then Pass Wealth to Your Family
• Donor-Advised Funds: Flexible, Simple, and Powerful
• Private Foundations: Maximum Control for Serious Philanthropists
• 2026 Tax Law Changes and What They Mean for Sandy Springs Donors
• FAQs About Sandy Springs Estate Planning for Charitable Giving and Foundations

Why Charitable Giving Belongs in Your Estate Plan

Giving to charity is not just a personal choice. It is a legal and financial strategy that can reduce estate taxes, generate income, and protect assets for your heirs. Many Sandy Springs families think of charitable giving as something separate from their estate plan, but the two work together in powerful ways.

Under the federal estate tax system, assets transferred to qualified charitable organizations are fully deductible from your taxable estate. For high-net-worth families along the GA-400 corridor, this can make a significant difference. The federal estate tax exemption is currently over $13 million per individual, but careful planning around charitable bequests can further reduce exposure for larger estates.

Georgia does not impose a separate state estate tax, which gives Georgia residents a planning advantage. However, income tax planning still matters. When you transfer appreciated assets, such as stock in a Sandy Springs business or investment real estate near Perimeter Center, directly to a charity or charitable trust, you can avoid recognizing the capital gain that would otherwise be triggered by a sale. That is a real, immediate financial benefit, not just a feel-good decision.

Charitable giving also ties into generational wealth transfer planning. If you want your children and grandchildren to share your philanthropic values, structuring your plan around a donor-advised fund or a private foundation gives them a role in carrying that mission forward. Working with an Atlanta estate planning lawyer who understands both the tax mechanics and the human side of legacy planning is the most direct path to getting this right.

The 2026 tax year also brought meaningful changes under the One Big Beautiful Bill Act (OBBBA). The tax rules around charitable giving changed significantly starting January 1, 2026, under the OBBBA, which reduces the marginal value of charitable deductions for top-bracket taxpayers. These changes affect how you use every charitable vehicle in your plan, from simple bequests to complex trusts. Planning now, rather than waiting, gives you the most options.

Charitable Remainder Trusts: Income for You, a Legacy for Others

A charitable remainder trust, or CRT, is one of the most flexible tools in charitable estate planning. It lets you transfer assets into a trust, receive income from those assets for a set period, and then pass the remaining balance to a charity of your choice when the trust ends.

Charitable remainder trusts can help you plan major donations to charities you support, provide a predictable income for life or over a specific time period, allow you to defer income taxes on the sale of assets transferred to the trust, and may allow a partial charitable deduction based on the value of the charitable interest in the trust. For a Sandy Springs retiree living near the Chattahoochee River or a business owner selling a company near Dunwoody, this structure can turn a large, illiquid asset into a steady income stream while also fulfilling a charitable goal.

There are two main types of CRTs. A charitable remainder annuity trust (CRAT) pays a specific dollar amount each year, at least 5% and no more than 50% of the value of the corpus when the trust is established. A charitable remainder unitrust (CRUT) pays a percentage of the trust’s value each year, recalculated annually, which means payments can grow if the trust’s investments perform well.

Generally, a charitable remainder trust provides for a specified distribution, at least annually, to one or more beneficiaries, at least one of which is not a charity, for life or for a term of years, with an irrevocable remainder interest to be held for the benefit of, or paid over to, charity. Under Internal Revenue Code Section 664, a charitable remainder annuity trust and a charitable remainder unitrust shall, for any taxable year, not be subject to any tax imposed by this subtitle. That tax-exempt status is a core part of what makes the CRT so attractive for transferring appreciated assets.

One thing to keep in mind: upon creation of a CRT, the taxpayer will receive a charitable deduction on their income tax return equal to the present value of the remainder that eventually is donated to charity. However, under the 2026 OBBBA rules, starting in 2026, itemizing taxpayers can only deduct charitable contributions that exceed 0.5 percent of their adjusted gross income, and high earners face a 35 percent cap on the value of those deductions. These changes affect the immediate tax value of funding a CRT, though the capital gains deferral and estate planning benefits remain strong. Charitable remainder trusts must annually file Form 5227, Split-Interest Trust Information Return.

Georgia charitable trusts are governed under the Revised Georgia Trust Code, found in O.C.G.A. Title 53, Chapter 12. If you are considering a CRT as part of your Sandy Springs estate plan, speaking with a qualified trust attorney who understands both federal and Georgia-specific trust law is an important first step.

Charitable Lead Trusts: Give First, Then Pass Wealth to Your Family

A charitable lead trust (CLT) works in the opposite direction from a CRT. Instead of you receiving income first and the charity receiving the remainder, the charity receives income payments for a defined period, and then your heirs receive whatever remains in the trust.

A CLT distributes payments annually to a charitable organization for a select number of years, or for the lifetime of named individuals. Once the payment term ends, the remaining interest is paid out to either the donor or one or more non-charitable beneficiaries. This makes a CLT a powerful wealth transfer tool, especially if you want to reduce estate and gift taxes while still benefiting a charity.

Think about a Sandy Springs family with significant assets held near the North Springs MARTA station area. If they want to support a local foundation for 15 years and then pass the remaining trust assets to their children at a reduced gift or estate tax cost, a charitable lead annuity trust (CLAT) could accomplish exactly that. You give assets to a trust that pays a charitable organization set payments for a number of years, which you choose. The longer the length of time, the better the potential tax savings to you. When the term is up, the remaining trust assets go to you, your family, or other beneficiaries you select.

CLTs come in two main forms: the charitable lead annuity trust (CLAT) and the charitable lead unitrust (CLUT). A charitable lead unitrust pays a variable amount each year to the charity based on the value of the assets in the trust. If the trust’s assets go up in value, the payments to the charity go up as well. A CLAT, by contrast, pays a fixed dollar amount each year regardless of investment performance.

For families focused on generational wealth transfer planning, CLTs are particularly useful in low-interest-rate environments. When the IRS Section 7520 rate is low, the present value of the charitable payments is higher, which reduces the taxable gift to your heirs. Working with an experienced estate planning attorney helps you time and structure a CLT to maximize this benefit for your family.

Donor-Advised Funds: Flexible, Simple, and Powerful

A donor-advised fund (DAF) is the simplest way for most Sandy Springs families to build charitable giving into their estate plan. It requires no trust document, no annual tax filings beyond your standard return, and no minimum distribution schedule. You fund it, recommend grants over time, and the sponsoring organization handles the administration.

Generally, a donor-advised fund is a separately identified fund or account that is maintained and operated by a section 501(c)(3) organization, which is called a sponsoring organization. Once the donor makes the contribution, the organization has legal control over it. However, the donor, or the donor’s representative, retains advisory privileges with respect to the distribution of funds and the investment of assets in the account.

When you contribute cash, securities, or other assets to a donor-advised fund at a public charity, you are generally eligible to take an immediate tax deduction. Then those funds can be invested for tax-free growth, and you can recommend grants to any eligible IRS-qualified public charity. This makes the DAF especially useful for “bunching” contributions in a high-income year, such as when you sell a business or receive a large bonus.

Under the 2026 OBBBA rules, for non-itemizers, the OBBBA creates a new above-the-line charitable deduction, up to $1,000 for single filers and $2,000 for married filing jointly, for cash gifts to public charities. However, this deduction does not apply to contributions to DAFs or supporting organizations, which is important for planning purposes.

DAFs also work well as part of an IRA beneficiary strategy. One of the more tax-efficient estate planning strategies involves naming your DAF as the beneficiary of a traditional IRA or other pre-tax retirement account. When a human heir inherits an IRA, required distributions are taxed as ordinary income and can push the heir into a higher bracket. A DAF, as part of a tax-exempt charity, receives the full account value without any income tax. The result is more money going to charity and potentially more after-tax wealth passing to your heirs through other, more tax-efficient assets.

For families who want to pass the practice of giving to the next generation, a DAF can be used to effectively pass the gift of philanthropy on to the next generation. You can name individuals as the successor grant advisor for your DAF with shared advising responsibilities, potentially allowing siblings, children, and grandchildren to pursue a shared mission together. This is a meaningful way to build a family legacy without the cost and complexity of a private foundation.

Private Foundations: Maximum Control for Serious Philanthropists

For Sandy Springs families who want complete control over how their charitable dollars are used, a private foundation offers the highest level of autonomy. You create a separate legal entity, fund it with assets, and then direct grants to the causes and organizations you choose. Many families near the Buckhead corridor or along the Sandy Springs city limits use private foundations to support arts, education, or community development in ways that a DAF cannot match.

A private foundation is organized under Internal Revenue Code Section 501(c)(3) and is subject to strict IRS rules. These include a requirement to distribute at least 5% of its assets each year for charitable purposes, an excise tax on net investment income, and rules against self-dealing between the foundation and its founders or related parties. Unlike private foundations, which must distribute at least 5% of their assets annually, donor-advised funds have no federal minimum payout requirement. That distinction matters when choosing between the two vehicles.

Private foundations also require annual filing of IRS Form 990-PF, which is a public document. If privacy is a priority for your family, this is a meaningful consideration. Families who want the control of a private foundation without the public disclosure sometimes use a combination of a foundation and a DAF, routing some grants through the DAF for added flexibility.

In Georgia, a private foundation is typically structured as a nonprofit corporation under O.C.G.A. Title 14 or as a charitable trust under O.C.G.A. Title 53, Chapter 12 of the Revised Georgia Trust Code of 2010. The choice of structure affects governance, liability, and the ease of transferring control to the next generation. Families with closely held business interests, real estate near Alpharetta, or investment portfolios often find that a private foundation, combined with a well-drafted succession plan, is the most effective way to pursue multi-generational philanthropy.

Working with an experienced estate tax planning lawyer is critical before funding a private foundation. The rules around excise taxes, self-dealing, and required distributions are detailed, and mistakes can be costly. Slowik Estate Planning, based in Atlanta, Georgia, can walk you through whether a private foundation fits your goals and how to structure it correctly from the start.

2026 Tax Law Changes and What They Mean for Sandy Springs Donors

The One Big Beautiful Bill Act (OBBBA) made the most significant changes to charitable giving tax rules in years, and all of them took effect on January 1, 2026. If you have not reviewed your charitable giving strategy since 2025, now is the time to do it.

New for 2026 is the 0.5 percent of AGI floor on the charitable contribution deduction. Also new is the restriction on itemized deductions for taxpayers in the 37 percent tax bracket, limiting the tax benefit to the 35 percent tax bracket. For a Sandy Springs executive with a high income, this means the after-tax cost of each dollar donated is slightly higher than it was before.

The OBBBA created a new charitable contribution deduction for non-itemizers effective starting in 2026. 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.

For retirees in Sandy Springs, qualified charitable distributions (QCDs) from IRAs remain one of the most powerful tools available. If you are over 70½ and have an IRA, you can make charitable gifts, any amount up to $108,000 per tax year adjusted annually for inflation, by making a qualified charitable distribution directly from your IRA. QCDs count toward your annual required minimum distribution but are not included in taxable income and will not be subject to the new limitations on charitable deductions starting in 2026.

These changes make it more important than ever to plan strategically. Bunching contributions, using appreciated stock instead of cash, and timing your gifts to align with high-income years are all techniques that can offset the impact of the new rules. The team at Slowik Estate Planning stays current on federal and Georgia tax law to help Sandy Springs clients make the most of every charitable dollar. Every estate plan is different, and prior results from other clients do not guarantee similar outcomes for your situation. We encourage you to contact our Atlanta, Georgia office to discuss your specific circumstances.

FAQs About Sandy Springs Estate Planning for Charitable Giving and Foundations

What is the difference between a charitable remainder trust and a donor-advised fund?

A charitable remainder trust (CRT) is a formal trust document that pays income to you or another beneficiary for a set period, then transfers the remaining assets to charity. It involves legal setup costs and annual IRS filings. A donor-advised fund (DAF) is a simpler account held by a sponsoring nonprofit organization. You contribute assets, take a deduction in that year, and then recommend grants to charities over time. CRTs are better suited for transferring large appreciated assets while generating income, while DAFs work well for ongoing, flexible charitable giving. Both tools can be part of the same estate plan.

Does Georgia have any state-level tax benefits for charitable giving?

Georgia does not impose a separate state estate tax, so there is no state-level estate tax deduction for charitable bequests to calculate. However, Georgia follows federal income tax treatment for most charitable deductions, meaning gifts to qualified charities reduce your Georgia taxable income to the extent they reduce your federal adjusted gross income. Georgia also offers a specific income tax credit for contributions to qualified education scholarship organizations under O.C.G.A. § 20-2A-1 et seq., which is separate from the federal charitable deduction. An Atlanta estate planning attorney can help you identify which Georgia-specific incentives apply to your situation.

Can I name a donor-advised fund as the beneficiary of my IRA?

Yes, and this is one of the most tax-efficient strategies available to Sandy Springs residents with retirement accounts. When a DAF, as part of a tax-exempt charitable organization, receives IRA assets at your death, no income tax is owed on the distribution. Your human heirs, by contrast, would owe ordinary income tax on inherited IRA distributions. By directing your IRA to a DAF and leaving other assets to your heirs, you can reduce the overall tax burden on your estate while still fulfilling your charitable goals. This strategy works best when coordinated with your full estate plan.

What rules govern private foundations in Georgia?

A private foundation in Georgia is typically organized either as a nonprofit corporation under O.C.G.A. Title 14 or as a charitable trust under O.C.G.A. Title 53, Chapter 12 of the Revised Georgia Trust Code of 2010. At the federal level, private foundations are subject to IRS rules under IRC Sections 4940 through 4945, which include a minimum distribution requirement of 5% of assets annually, an excise tax on net investment income, and strict self-dealing prohibitions. These rules apply regardless of how the foundation is structured under Georgia law. Annual filing of IRS Form 990-PF is required, and that return is publicly available.

How do the 2026 OBBBA changes affect my charitable trust deduction?

The OBBBA did not change the rules for how charitable remainder trust deductions are calculated. The deduction is still based on the present value of the charitable remainder interest using the IRS Section 7520 rate at the time the trust is funded. However, the new 0.5% of AGI floor and the 35% deduction cap for top earners apply to itemized charitable deductions generally, which can reduce the immediate income tax benefit of funding a CRT in 2026. The capital gains deferral benefit and the estate tax reduction benefit of a CRT remain unchanged. If you are considering a CRT, reviewing the numbers with a qualified estate planning attorney before funding is strongly recommended.