A: Charitable giving can be as simple as leaving a specific amount in your will or trust, naming a charity as an account beneficiary, or using a donor-advised fund or charitable trust. Those distributions are generally taxed as ordinary income, potentially reducing the amount the beneficiary ultimately retains. A tax-exempt charity, by contrast, generally pays no income tax when it receives IRA funds. If you intend to benefit both family members and charities, consider leaving IRA assets to charity and other assets to individuals. Thoughtful asset selection can accomplish the same charitable and family goals while increasing what each beneficiary ultimately receives.