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Members and friends who wish to make a substantial gift to the Museum
over a period of years, who own an income producing asset that is appreciating,
and who want to ensure that their property will ultimately pass to loved
ones may be interested in a Charitable Lead Trust. Instead of
directing income payments to the donor, this type of trust provides
income payments to the Museum for a specified number of years. After
that term, the trust assets are transferred to younger beneficiaries
the donor designates, with a substantial deduction on the gift or estate
taxes in consideration of the income stream to the Museum.
In conjunction with
an outright charitable gift to the Museum or a gift that provides an
income stream to the donor (such as a Charitable Remainder Trust), donors
can pass assets to their families by using a special, non-charitable
Insurance Trust based on their own lives. The donors use tax
savings and/or income from their charitable gift to make annual contributions
to the Insurance Trust. These funds are then used to cover premium payments
on a life insurance policy on the donors' lives. When the donors are
no longer living, the charitable trust benefits the Museum, and the
families of the donors receive the insurance proceeds from the Insurance
Trust. Since the Insurance Trust is the legal owner of the life insurance,
this asset is not included in the donors' estate and is received by
their children completely free of all tax burdens.
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