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Donate to Charity and Create a Income Stream for Yourself or Other Family Member

February 20, 2024


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. 


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 

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 

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 


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 


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.