Charitable Trusts

The Charitable Remainder Trust provides lifetime income to you and/or loved ones and significant tax advantages. You transfer assets (usually cash, securities or real estate) to a trustee of your choice through a formal trust agreement. If appreciated property is donated, no capital gains tax is due on the transfer, and your income tax deduction is based on the fair market value of the donated assets. Your trustee invests the trust assets and makes annual payments to you and/or a loved one, based on the payout rate chosen by you. At your death or at the termination of the trust, the principal is distributed to the Library. You may choose a fixed rate of income (Annuity Trust) or a variable rate of income (Unitrust).

In contrast, the Charitable Lead Trust allows you to transfer assets to your family at a reduced tax cost while benefiting the Library now. You transfer assets (usually cash or securities) to a trustee of your choice through a formal trust agreement. Your trustee invests the trust assets and makes annual income payments to the Library. At termination, the trust distributes all of its assets, including any appreciation, to your heirs.

To learn more about charitable trusts, please contact the Planned Giving Staff.