GIFTS THAT PROTECT YOUR ASSETS

Did you know that you could receive a charitable deduction now for gifts made at a later date? Or, if you would like to reduce the tax burden on your loved ones, you can waive this benefit and reduce the gift or estate taxes on property you wish to pass.

A non-grantor plan is perfect for those who wish to make a gift to the PBS, but still want to retain the property for loved ones, heirs. With this plan, you irrevocably transfer assets to a trustee and provide that payments be made to the Palm Beach Symphony for a certain number of years (or until the end of your or another’s life). Then, the principal is distributed to your children, grandchildren, or other heirs. The principal passes to your heirs at greatly reduced gift- and estate-tax rates and sometimes escapes them altogether.

There are two types of charitable lead trusts: the grantor lead trust and the non-grantor lead trust, popularized by the late Mrs. Jacqueline Kennedy Onassis.

Non-Grantor

The Process

  1. Create trust agreement stating terms of the trust (usually for a term of years) and transfer cash or other property to trustee
  2. Trustee invests and manages trust assets and makes annual payments to the PBS, ensuring that a legacy of music in Palm Beach as well as your legacy continue to live on.
  3. After the trust ends, the remainder will be transferred back to you.

Your Benefits

  • Heirs receive future gift at a fraction of the value.
  • Professional management of assets during term of trust.
  • No tax on annual income of trust, though no charitable income-tax deduction.
  • You will provide the PBS worthwhile support for the symphony as a whole or for a specific program that is most important to you.

Grantor

The Process

  1. Create trust agreement stating terms of the trust (usually for a term of years), transfer cash or other property to trustee.
  2. Trustee invests and manages trust assets and makes annual payments to the PBS, ensuring that a legacy of music in Palm Beach as well as your legacy continue to live on.
  3. After the trust ends, the remainder will be transferred back to you.

Your Benefits

  • At the end of the trusts term, the property will be returned back to you.
  • Professional management of assets during term of trust.
  • Charitable income-tax deduction, though tax on trust’s annual income not waived.
  • You will provide the PBS worthwhile support for the symphony as a whole or for a specific program that is most important to you.