Charitable trusts are a sophisticated estate planning technique which can accomplish many simultaneous goals. You can make your charitable AIPAC Tomorrow Campaign gift through either a Charitable Remainder Trust or a Charitable Lead Trust.
How Charitable Trusts Work
As you consider which kind of trust best suits your needs, you will want to review how each trust works and what benefits each offers.
Charitable Remainder Trusts
In this instance, you would transfer cash or appreciated assets into a charitable remainder trust. The trust pays an income to you and/or other beneficiaries, usually for life.
Upon your passing, the trust distributes its assets to establish a named endowment fund. The endowment fund is invested, and its proceeds are then distributed to AIPAC's annual campaign at a rate of 5% per year. To discuss which trust may suit your needs, and to receive a customized illustration, contact AIPAC Endowment Director Jodi Kurtis.
Benefits of a Charitable Remainder Trust
There are many benefits that may be available by giving your gift through a Charitable Remainder Trust, including:
- Get an immediate income tax deduction for the value of the Charitable Remainder Trust.
- Avoid capital gains taxes on contributed assets.
- Receive annual annuity payments for life or a term of years.
- Reduce possible estate taxes by transferring assets to the trust.
- Establish an endowment fund in perpetuity in your or your family's name.
Learn more about charitable remainder trusts.
Charitable Lead Trusts
Charitable Lead Trusts are established by transferring an asset, such as cash or securities, to a trust that will pay an annual income to AIPAC's affiliated charitable organization.
The transfer can occur during your lifetime or upon your passing, by establishing the trust through your will. The trust terminates at a pre-specified time, and the assets in the trust transfer to AIPAC or to your heirs. At the creation of the trust, a gift or estate tax may be imposed on the calculated value of the asset being left to the beneficiaries. When the trust terminates, the assets transfer to AIPAC or to your heirs with no additional tax.
Benefits of a Charitable Lead Trust
There are many benefits that may be available to you by giving your gift through a Charitable Lead Trust, including:
- Reduce or eliminate possible gift or estate taxes on transferred assets to heirs or AIPAC.
- Provide a guaranteed annual income to AIPAC's affiliated charitable organization.
- Provide the option to establish an endowment fund in perpetuity in your name.
Learn more about charitable lead trusts.
The AIPAC Tomorrow Campaign is a planned giving and endowment initiative of the American Israel Public Affairs Committee (AIPAC-Tax ID: 53-0217164) and its affiliated charitable organization, the American Israel Education Foundation (AIEF- Tax ID 52-1623781).