Charitable giving in a Florida estate plan is the deliberate use of wills, trusts, and beneficiary designations to direct part of your wealth to qualified charities, often through vehicles such as charitable remainder trusts, charitable lead trusts, or a private foundation. When structured correctly under Florida law, these tools let you support causes you care about while reducing estate and income tax exposure and, in many cases, generating an income stream for yourself or your family. For people who own property in more than one state, the planning has an extra layer: your charitable trust has to work cleanly across Florida and wherever else you hold real estate or claim residency.
I have spent a good part of my practice untangling estate plans for people who split their lives between Miami and somewhere up north. The charitable piece is where I see the most missed opportunity and, occasionally, the most avoidable mistakes. This article walks through how charitable giving and trusts actually function in a Florida plan, what makes the dual-state situation different, and where the real tax leverage lives.
Why charitable planning looks different when you own property in two states
Florida has no state estate tax and no state income tax. That single fact reshapes the math for anyone moving from a high-tax state like New York, New Jersey, or Connecticut. If you are a New York domiciliary, your worldwide estate can be exposed to the New York estate tax, which has its own exemption and a notorious “cliff” that can claw back the entire exemption if your taxable estate exceeds roughly 105% of the threshold. Florida residents avoid that state-level layer entirely.
So the first question in any charitable plan for a dual-state client is not which charity but which state claims you. Domicile drives whether a state estate tax applies, whether a state income tax hits the income from a charitable remainder trust, and sometimes whether your trust is even recognized the way you intended. A charitable trust funded with a Manhattan co-op while you are still a New York domiciliary is a very different animal than the same trust funded after you have genuinely established Florida domicile.
The federal layer applies no matter where you live. In 2025 the federal estate and gift tax exemption is $13.99 million per person, and the top federal estate tax rate is 40%. Charitable transfers qualify for an unlimited federal estate tax charitable deduction under Internal Revenue Code section 2055, and an unlimited gift tax charitable deduction under section 2522. That deduction is the engine behind most of the strategies below.
The core charitable vehicles in a Florida estate plan
Outright bequests in a will or revocable trust
The simplest charitable tool is a bequest, a clause in your will or revocable living trust leaving a fixed dollar amount, a percentage of the residue, or a specific asset to a named charity. Florida wills are governed by Chapter 732 of the Florida Statutes, and a charitable bequest is treated like any other devise. It is fully deductible for federal estate tax purposes, it is revocable during your lifetime, and it requires no separate trust administration.
For many clients this is enough. If your goal is to leave $100,000 to your synagogue or alma mater at death, you do not need an elaborate structure. Where bequests fall short is when you want a current income tax deduction, an income stream, or a way to handle a highly appreciated asset without triggering capital gains.
Charitable remainder trusts (CRTs)
A charitable remainder trust is an irrevocable trust that pays income to you (or another beneficiary) for life or for a term of up to 20 years, after which whatever remains passes to charity. CRTs come in two flavors: the charitable remainder annuity trust (CRAT), which pays a fixed dollar amount, and the charitable remainder unitrust (CRUT), which pays a fixed percentage of the trust’s value recalculated annually. Both are creatures of IRC section 664.
The CRT shines with appreciated, low-basis assets. Consider a common Miami scenario:
- You bought a vacation condo in Brickell decades ago, or you hold a block of appreciated stock.
- Selling it outright would trigger a large capital gains bill.
- You instead contribute the asset to a CRUT. Because the trust is tax-exempt, it sells the asset with no immediate capital gains tax, reinvests the full proceeds, and pays you an income stream on the larger base.
- You get an upfront income tax charitable deduction for the present value of the charity’s future remainder interest.
- At the end of the term, the remainder goes to your chosen charity, and it leaves your taxable estate entirely.
The IRS requires that the projected charitable remainder be at least 10% of the initial value, and a CRAT must also pass a 5% probability-of-exhaustion test. These are real constraints, not formalities, and they are where amateur drafting goes wrong.
Charitable lead trusts (CLTs)
A charitable lead trust is the mirror image of a CRT. The charity receives the income stream first, for a set term, and the remainder then passes to your heirs. CLTs are powerful in a low-interest-rate environment because they can transfer wealth to children or grandchildren at a deeply discounted gift or estate tax value. A grantor CLT also gives you an upfront income tax deduction; a non-grantor CLT does not, but it removes the asset’s growth from your estate. This is an advanced tool best suited to clients with both significant charitable intent and a desire to move appreciating assets to the next generation.
Donor-advised funds and private foundations
Not every charitable plan needs a custom trust. A donor-advised fund (DAF) lets you make an irrevocable gift, take the deduction now, and recommend grants over time with almost no administrative burden. A private foundation gives you maximum control and a family-legacy vehicle, but it carries strict excise tax rules under IRC sections 4940 through 4945, annual filing obligations, and a 5% minimum distribution requirement. For most families, a DAF delivers 90% of the benefit at 10% of the cost.
How dual-state ownership complicates the charitable trust
Here is where my out-of-state and snowbird clients need to slow down. A charitable trust is only as clean as the assets you put into it and the domicile rules surrounding it.
Out-of-state real estate triggers ancillary probate. If you keep a home in New York and a condo in Florida and you intend to leave one of them to charity through your will, the out-of-state property can force a second, ancillary probate proceeding in that state. Funding a revocable trust during your lifetime, and then routing the charitable gift through the trust, usually avoids that mess. This is one of the strongest arguments for trust-based charitable planning rather than will-based for anyone with multi-state real estate.
State income tax can follow the income stream. The income a CRT pays you is taxed to you under the trust’s four-tier accounting rules. If you are a genuine Florida resident, there is no state income tax on that stream. If New York still considers you domiciled there, that same income can be taxed. Establishing and documenting Florida domicile — filing a Florida Declaration of Domicile under Florida Statutes section 222.17, registering to vote, changing your driver’s license, and spending the days — is part of the charitable plan, not separate from it.
The remainder interest interacts with state estate tax. Because the federal charitable deduction is unlimited, a fully charitable remainder removes that value from both the federal and any applicable state estate tax base. For a New York domiciliary near the estate tax cliff, a well-sized charitable gift can be the difference between triggering the cliff and staying under it.
Florida’s homestead protections do not transfer. Florida’s constitutional homestead protection (Article X, section 4) is generous, but it has strict devise restrictions when there is a surviving spouse or minor child. You generally cannot leave homestead property directly to a charity if you have a qualifying spouse or minor child. That limitation surprises people, and it is a recurring reason charitable plans get redrafted. Your Miami homestead may not be the asset to give away.
A practical sequence for building the charitable piece
- Settle domicile first. Decide and document whether you are a Florida resident. Everything downstream depends on it.
- Inventory assets by location and basis. Identify which assets are highly appreciated, which are out-of-state real estate, and which are retirement accounts. Each calls for a different charitable approach.
- Match the vehicle to the asset. Appreciated stock or a vacation property points toward a CRT. Retirement accounts often point toward naming a charity as beneficiary, since charities pay no income tax on IRA distributions. Cash and a desire for simplicity point toward a DAF or a bequest.
- Coordinate beneficiary designations. IRAs, 401(k)s, and life insurance pass outside your will and trust. A charitable plan that ignores these is incomplete.
- Build in flexibility. Family circumstances change. Use revocable structures where you can, and reserve the irrevocable commitments for assets you are genuinely ready to dedicate.
Special situations worth a closer look
Retirement accounts as the ideal charitable asset. Traditional IRAs are taxed to your heirs as ordinary income, and under the SECURE Act most non-spouse beneficiaries must drain the account within 10 years. Leaving that account to charity, and leaving other, more tax-favored assets to your children, is one of the cleanest moves in charitable planning. If you are over 70½, a qualified charitable distribution lets you give directly from your IRA, up to $108,000 in 2025, and exclude it from income.
Blending charitable and special-needs planning. Some families want to provide for a disabled loved one and still leave a charitable legacy. That requires careful sequencing so the charitable gift does not disrupt needs-based benefits. If New York is part of your picture, our colleagues at Morgan Legal handle these structures directly; see their overview of a for how a supplemental needs trust can sit alongside charitable bequests. Their broader is a useful reference point for clients whose plans straddle the New York and Florida line.
Closely held business interests. Gifting an interest in a family business to a CRT or foundation is possible but riddled with traps, including the unrelated business taxable income rules and the difficulty of valuing a non-marketable interest. This is not a do-it-yourself project.
Common mistakes I see
- Trying to give away homestead when a spouse or minor child triggers Florida’s devise restrictions.
- Funding a CRT with the wrong asset — putting in cash, which wastes the capital-gains advantage, instead of appreciated property.
- Ignoring domicile and assuming Florida’s no-income-tax shield applies before it actually does.
- Naming a charity in a will for out-of-state property, inviting ancillary probate that a trust would have avoided.
- Forgetting beneficiary forms, so the carefully drafted trust never controls the IRA you meant to give.
Where to go from here
Charitable giving rewards intention and punishes improvisation. The vehicles are well established, the tax benefits are real, and for dual-state property owners the upside is magnified by Florida’s tax environment, but only if the structure respects both states’ rules. If you are weighing a charitable component, it is worth reviewing your full plan, including your will and how assets would move through Florida probate, before committing anything irrevocably.
For Florida residents and snowbirds planning from Miami, our team works through these decisions asset by asset. You can learn more about our or reach out to talk through your specific situation.
Frequently Asked Questions
Do I need to be a Florida resident to set up a charitable trust in Florida?
No. You can create a charitable trust governed by Florida law without being a full-time resident, but your state of domicile determines whether state income tax applies to any income stream and whether a state estate tax applies to the remainder. For dual-state owners, settling and documenting domicile, ideally as a genuine Florida resident, is the first step because it drives the tax outcome of the entire charitable plan.
What is the difference between a charitable remainder trust and a charitable lead trust?
In a charitable remainder trust (CRT), you or your chosen beneficiary receive income for life or a term of years, and the charity receives whatever remains at the end. In a charitable lead trust (CLT), the charity receives the income stream first, and your heirs receive the remainder. CRTs are used to convert appreciated assets into income with a current deduction; CLTs are used to transfer wealth to family at a discounted gift or estate tax value.
Can I leave my Miami homestead to charity?
Often not directly. Florida’s constitutional homestead provisions (Article X, section 4) restrict how you can devise homestead property when you have a surviving spouse or a minor child. In those cases you generally cannot leave the home to a charity. If you have no qualifying spouse or minor child, the restriction does not apply. Because of this, the homestead is frequently the wrong asset to use for a charitable gift, and an attorney should review your situation first.
Is a charitable gift from my estate tax deductible?
Yes. Transfers to qualified charities qualify for an unlimited federal estate tax charitable deduction under Internal Revenue Code section 2055 and an unlimited gift tax charitable deduction under section 2522. Lifetime gifts to certain charitable trusts can also generate a current income tax deduction. Because Florida has no state estate or income tax, Florida residents avoid the additional state-level layers that residents of states like New York may face.
What is the best asset to leave to charity?
For many families, the most tax-efficient charitable gift is a traditional IRA or other pre-tax retirement account, because charities pay no income tax on those distributions while individual heirs would. Highly appreciated, low-basis assets such as long-held stock or real estate are ideal for funding a charitable remainder trust, since the trust can sell them without immediate capital gains tax. Cash and simple bequests work well when your goal is straightforward and you want to avoid administrative complexity.
Have a question about your estate?
Talk it through with Russel Morgan — free 30-minute consult.
