Charitable Remainder Trusts
You may establish a charitable remainder trust with the Lucy Robbins Welles Library as a trustee with a gift of $50,000 or more. Depending on the type of trust you choose, you may use a variety of assets, including cash, publicly traded stocks, mutual funds or bonds, closely held stock and real estate.
Charitable remainder trusts can be structured in different ways to meet your financial and charitable goals. Selecting the form that is best for you requires careful consultation with your professional advisors. Our staff can provide you and your professional advisors with additional information and specific illustrations of how a charitable remainder trust or other life income gift can work for you.
Charitable Remainder Annuity Trust
Provides you with a fixed income.
A charitable remainder annuity trust provides a fixed income. With this type of trust, your lifetime or term income is a fixed annuity, based on a percentage of the initial value of your assets. The annuity amount must be at least 5 percent, by law.
An annuity trust is most often used when your primary goal is a fixed income and long-term inflation is not a concern.
Charitable Remainder Unitrust
The flexible way to receive and give an income.
To create a charitable remainder unitrust, you place assets into an irrevocable trust and name a trustee (for example, the Lucy Robbins Welles Library). The trustee invests the assets (which can grow tax-free) and pays an amount for life or for a set term of years to the beneficiaries you select. When the last income beneficiary dies or the trust’s term ends, the trust dissolves and the remaining assets (the charitable remainder) are given to the Foundation to be used for the purpose you designate.
The main feature of the charitable remainder unitrust is a variable income. With this type of trust, you receive a lifetime or term income that is a percentage of your trustee’s assets valued annually (by law, a minimum 5 percent). Income payments increase or decrease with the changing value of the trust.
The unitrust provides a potential hedge against inflation as income payments may rise over time. In addition, the unitrust can be structured to defer income and maximize growth (for retirement planning, for example) or to handle specific types of assets.