Junior Council Corporate Support Members' Special Programs Member Benefits

Pass Assets to Children


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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