Charitable Remainder Trusts

A charitable remainder trust is an agreement between a donor and a trustee that can provide fixed or variable income to meet the financial needs of the donor or another named beneficiary. At the termination of the agreement the remaining trust assets are passed on to the Arizona-Sonora Desert Museum.

How it works:

A charitable remainder trust is established when you transfer assets (cash, stock, or other securities) to the trustee named in a trust agreement. The trustee pays you (or whomever you designate as beneficiary in the trust agreement) income from the trust. Charitable remainder trusts are established for one or more lives, for a term of years not to exceed 20 years or a combination of the two.

After all of the income payments have been made from the trust, the trustee transfers the remaining trust assets to the Arizona-Sonora Desert Museum. The Museum can then use the assets to meet general purpose expenses or for a specific purpose that you have designated in the trust agreement.

Many charitable trusts are created to provide reliable income for the donor or the donor's spouse/beneficiary. Payments will depend upon the kind of trust chosen —

  1. a charitable remainder annuity trust provides the beneficiary a fixed amount of money annually that remains constant for the term of the trust; or
  2. a charitable remainder unitrust provides the beneficiary a percentage of the total value of the assets in the trust, as revalued each year.

The material presented here is not offered as legal or tax advice. We recommend you seek the advice of your tax advisor, attorney, and/or financial planner to make certain your considered gift fits well with your overall circumstances and planning.

Retrieved from the Arizona-Sonora Desert Museum web site on 07-16-2024