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MoMA

CHARITABLE REMAINDER AND LEAD TRUSTS

A charitable lead trust is the reverse of a charitable remainder trust.

Charitable Remainder Trusts

Charitable remainder trusts allow you to make a gift to MoMA and at the same time retain a benefit from the assets you give. These separately managed trusts can be tailored to meet your financial goals with respect to the payout rate, type of income stream (variable or fixed), and payment schedule. To establish a remainder trust, you make an irrevocable contribution of cash, securities, or other property, which is placed in trust. The trust pays an income stream to one or more named beneficiaries (which can include you) for life and/or for a set term of years (not to exceed 20), and the Museum receives the right to principal as a remainder interest. The two most common types of charitable remainder trust are: (1) the annuity trust, which pays a fixed dollar amount each year based on a percentage (at least 5%) of the initial fair market value of the trust assets; and (2) the unitrust, which pays a variable income stream based on a percentage (again, at least 5%) of the fair market value of trust assets as revalued each year. A deferral feature is available for charitable remainder unitrusts. Because charitable remainder trusts (like an IRA or 401(k)) are tax-exempt, this deferral feature can make them a useful retirement planning tool if you are in a position to defer your receipt of an income stream. Charitable remainder trusts are typically funded with assets worth $100,000 or more. Establishing such a trust generally entitles you to claim an immediate income-tax charitable deduction. You should consult with your financial, tax, and legal advisors for more information on charitable remainder trusts as they pertain to your particular situation and needs.

Contact the Office of Planned Giving at planned_giving@moma.org or (212) 708-9675 for further information.

Charitable Lead Trusts

A charitable lead trust is the reverse of a charitable remainder trust; the gift to MoMA is the income stream from the trust, not the remainder. Charitable lead trusts enable you to provide an income stream to the Museum immediately for a set term of years or for a term measured by one or more lifetimes after which the trust assets pass to you or your estate or to your heirs. Leaving the asset to heirs can significantly reduce the gift or estate tax that would otherwise apply. If you think a charitable lead trust could be a useful way to structure a gift to MoMA, you should review the alternatives for structuring the trust with your financial, tax, and legal advisors.

Contact the Office of Planned Giving at planned_giving@moma.org or (212) 708-9675for further information.

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