Provide for Your Loved Ones and the Vero Beach Museum of Art

CHARITABLE LEAD TRUSTS

Charitable lead trusts allow you to benefit from tax savings that result from supporting the Vero Beach Museum of Art, without giving up any assets that you’d like your family to receive someday.

You give assets to a trust that pays VBMA set payments for a number of years, which you choose. The longer the length of time, the better the potential tax savings to you. When the term is up, the remaining trust assets go to you, your family or other beneficiaries you select. This is an excellent way to transfer property to family members at a minimal cost.

What assets may be contributed to a charitable lead trust?

You can use the following types of assets to fund a charitable lead trust:

• Cash
• Publicly traded securities*
• Some types of closely held stock*
• Real estate*
• Certain other complex assets*

* Assets may need to be sold or coupled with a cash donation to ensure the trust has adequate resources to disburse the required payments. There may also be tax consequences.

Considerations for charitable lead trusts

• Unlike a charitable remainder trust, a charitable lead trust is not tax-exempt. Trust income is taxed like the income of any other complex or grantor trust.
• Requires legal setup and likely ongoing maintenance costs.
• Careful planning is required to ensure the trust can make its required payments during the trust term.
• The trust is irrevocable.

CHARITABLE REMAINDER TRUSTS

With a Charitable Remainder Trust, you can receive income each year for the rest of your life from assets you give to the trust. Your income can be either variable or a fixed amount. After your lifetime, the balance in the trust goes to the Museum.

Benefits of a charitable remainder trust include:

• potential for increased income from your investments
• up-front capital gains tax avoidance
• potential for a partial charitable income tax deduction

Is a charitable remainder trust right for me?

The CRT is a good option if you want an immediate charitable deduction, but also have a need for an income stream to yourself or another person. It is also a good option if you want to establish one by will to provide for heirs, with the remainder going to charities of your choosing.

NEXT STEPS

1. Contact Robyn Orzel at 772-231-0707 ext. 106 or roborzel@vbmuseum.org for additional information or with questions.
2. Consult with your tax and estate planning advisor to determine the best vehicle and strategy for your situation.
3. If you include the Vero Beach Museum of Art in your plans, please use our legal name and Federal Tax ID, and let us know so that we can thank you and celebrate your gift through the Masterpiece Legacy Society.

Legal Name: Vero Beach Museum of Art, Inc.
Address: 3001 Riverside Park Drive, Vero Beach, FL 32963
Federal Tax ID Number: 59-1867408

The information on this website is not intended as legal or tax advice. This information is intended to provide general gift planning information.  Figures cited in examples are for hypothetical purposes only and are subject to change. References to estate and income taxes include federal taxes only. State income/estate taxes or state law may impact your results. Consult with your own legal and financial advisors regarding your specific circumstances before making any gift.