A Charitable Remainder Trust

Do you have an asset, such as securities or real estate, that you would like to give to the Museum of Science, but you need the income the property provides? Or do you have an asset from which you would like to receive more income, but you hesitate to sell it because taxes on your capital gain would take a big bite out of your proceeds. If so, you should consider donating your asset to a charitable remainder trust.

With a charitable remainder trust, you can make a gift to the Museum of Science to inspire everyone to use science for the global good and receive lifetime income. Because a charitable remainder trust is tax-exempt, there is no capital gains tax when the trust receives your appreciated assets or when it sells them. The trust can put the full fair market value of your asset to work first for you and ultimately for the Museum of Science. In addition, you receive an income tax charitable deduction for a portion of the trust amount which can be used immediately to save on income taxes.

How a charitable remainder trust works:

  • You transfer assets to a trust.
  • You choose a trustee to oversee the operation of your trust or serve in that role yourself. the Museum of Science will consider serving as trustee under certain circumstances, please contact us to discuss.
  • You choose the income beneficiaries of the trust. It can be you, you and your spouse, loved ones, devoted employees, or anyone else you wish. The trustee manages the trust assets and pays income each year to these beneficiaries.
  • The payments made to beneficiaries may be the same amount each year, offering the security of fixed payments, or vary based on a percentage of the trust value, offering the possibility that payments may grow over time.
  • When the trust term ends, usually upon the passing of the income beneficiaries, its remaining assets go to the Museum of Science for use as you directed.

Because everyone’s situation is different, we encourage you to seek professional legal, estate planning, and financial advice before deciding on a course of action. This information does not constitute legal or financial advice and should not be relied upon as a substitute for professional advice.