CHARITABLE GIVING AND RECEIVE A INOCME
Legacy Income Trusts (Trusts) are next-generation charitable planned-giving instruments established by U.S. Charitable Gift Trust® (Gift Trust), a tax-exempt public charity offering donor-advised funds.
Features
The Trusts provide Donors contributing cash and/or acceptable securities with the opportunity to:
Avoid recognition of capital gains on contributions of appreciated assets
Receive a federal income tax deduction based on the charitable remainder portion of the contribution value Allowable deduction varies with the age and number of individual income beneficiaries and the assumed rate of Trust returns (3.8% for contributions in 2024). See calculator available at uscharitablegifttrust.org/USLitcalculator
Provide monthly distributions of tax-advantaged income for life to up to ten individual income beneficiaries designated by the Donor Distribution rates as of December 31, 2023 ranged from 5.94% (Trust I.2) to 6.81% (Trust III.2). For current distribution rates, see uslegacyincometrusts.org
Trust distributions expected to be taxed primarily as qualified dividend income, at maximum federal rates of 23.8% versus 40.8% for taxable interest income (indicated rates include the federal tax on net investment income)
Make grants to qualified charitable organizations selected by the Donor or the Donor’s designee following the death of the last-surviving of the Donor’s individual income beneficiaries Grants are made through a donor-advised sub-account of the Gift Trust
Applications
Owners of low-basis stocks and other appreciated securities
Retirees seeking income and longevity protection
Individuals seeking to utilize their federal lifetime gift and estate tax exemptions
Charities seeking to enhance their planned-giving fundraising
Forms of Contributions
Cash
Publicly-traded securities held more than one year
Privately held or restricted stock (with Trustee approval)
No debt-encumbered property, tax-exempt securities or shares of funds holding tax-exempt securities
Contact TCWG for more information on this Charitable Giving Opportunity.
While the tax or legal information provided is based on our understanding of current laws, and has been gathered from sources believed to be reliable, it cannot be guaranteed. Federal tax laws are complex and subject to change. Neither LPL Financial, nor its registered representatives, provide tax or legal advice. We suggest you consult with a qualified tax advisor to discuss your specific situation.