Section 2055 charitable deduction is a federal estate tax provision that allows an unlimited deduction for qualifying transfers to charitable organizations at death. Gifts to public charities, certain private foundations, and governmental entities can be deducted from the gross estate, reducing or eliminating estate tax. The deduction applies to outright bequests as well as interests passing through charitable remainder trusts, charitable lead trusts, and other split-interest arrangements, provided technical requirements are met. Section 2055 is a cornerstone of charitable estate planning, enabling clients to support philanthropic causes while managing transfer taxes and preserving wealth for family and other beneficiaries.

Estate planners routinely incorporate Section 2055 charitable deduction strategies into wills and trusts for charitably inclined clients, especially those with taxable estates. They design charitable remainder trusts to provide lifetime income to individuals, with the remainder passing to charity, and charitable lead trusts that pay income to charity first, with the remainder to heirs. Life insurance can be used alongside these structures to replace wealth given to charity or to leverage charitable impact. Advisors explain that Section 2055 allows clients to direct dollars that might otherwise go to estate tax toward organizations they care about. Understanding this deduction helps advisors present charitable planning as both a values-based and tax-smart strategy.