CHARITABLE ANNUITIES AND CHARITABLE REMAINDER TRUSTS

Charitable Annuities

A charitable annuity is a means to guarantee yourself an income, part or all of which will be tax-exempt during your lifetime or for a predetermined period.

It is simple to set up—part of your contribution goes to purchasing the annuity from an insurance company, while the other part constitutes your donation. This is an attractive option for donors aged 65 or over seeking a stable guaranteed income.

Advantages:

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  Enjoy lifelong guaranteed income
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  Maintain or increase your available annual income
• 
  Benefit from minimal or no taxation on annuities
• 
  Unburden yourself from the hassle of asset management

Charitable Remainder Trusts

With a charitable remainder trust, you can donate assets (cash, real estate, and real property) while retaining the income generated by these assets for either a predetermined period or throughout your lifetime, depending on the terms set when the trust was established. At the end of this period or upon your death, the remainder of the trust is transferred to the MMFA.

Trust assets are entrusted to a trustee—an individual or entity capable of managing the trust. It is also possible to set up a trust that guarantees income for your surviving spouse. In this case, the assets are transferred to the Museum only after both spouses have passed away.

Advantages:

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  Benefit from transferred assets as a beneficiary of the trust
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  Immediately receive a tax receipt for your donation equal to the projected value of the transferred assets
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  Unburden yourself from the hassle of asset management

Note:
Setting up a charitable annuity or charitable remainder trust is an important decision, and it is wise to seek the advice of your financial (planner, accountant, tax specialist) and legal (notary or lawyer) advisors.

These professionals have the know-how and expertise to explain how best to structure your donation and what tax benefits apply to your specific situation.