What Are the Tax Implications Of Will Donations

by Josh Biggs in Finance on 6th August 2021

Making a will is a rather smart thing to do. If you decide in advance how your money will be divided, your family is saved from a rather painful process in the future. However, you should never undertake any such job in a hurry. 

Each will donation that you make comes under specific tax guidelines. It is better to be aware of them before you take a call. Here we will tell you the tax implications of will donations and how to proceed.

Election to donate

If the elected representatives are authorized by the law or the will-maker to donate, they may choose to donate a conservative easement on the property before the estate tax is filed. There are state and federal benefits that you may get by doing so, and here we will tell you all about it.

Lifetime donations 

If a decedent has granted conservative easement before death, it will reduce the property value for both the state inheritance and Federal Tax purposes. The property that is subject to such easement will be valued as restricted for estate taxes. 

Apart from that, the donor will also get the chance to deduct the appraised value of a donation made with charitable intent. Visit https://willstrustslpa.co.uk/serviceareas/charitable-organisations-and-leaving-gifts-in-wills/ to know more about will-making and processes involved. 

Post mortem donations 

If the landowner passed away without giving a conservative easement, his reps could still benefit from the benefits. All they have to do is to donate the conservative easement before they pay the estate tax.

In case the conservative easement comes under the charitable contribution section under Code §170(h), they can claim the value of the conservative easement in the form of the charitable deduction.

Estate tax exclusions

Supporting a property that under an estate is restricted through a conservative easement that makes it a charitable contribution around 40% of the property’s value could be excluded from estate value while calculating estate tax. 

This exclusion is, however, dependent on certain factors. Also, it is dependent on whether they provided the easement during the property owner’s life or after his death. 

The exact percentage is calculated on the extent to which the conservation easement has reduced the property value. Usually, the maximum deduction you can get is $500,000. The representatives administering the estate should check the benefit of partial exclusion under §2031(c). In simple terms, when they sell the property, eventually, the owner will pay the tax.

 They will base the tax on the gain that they realize over how much profit in investment the deceased man-made on that property. It will not be calculated on the fair value of the property on the day of the death.


Making a will is not an easy business. There are a lot of factors that you have to pay attention to. These are just the tax-related aspects of the same. However, you have to understand the concept fully before you start writing your will. 

Contact a responsible will writing firm to help you execute your will successfully. That would make your money transfer process rather simple. 

Categories: Finance