Charitable Trusts

If a donor is interested in making a gift to HMH but does not wish to give up income from specific assets, the donor might consider making a gift in trust. This method allows the donor to make a gift while retaining an income for life, for the life of a spouse, or other beneficiary. The following methods are available:

Charitable Lead Trust

This type of trust is suited to a donor who wishes to establish a trust to benefit HMH for a period of years, transferring cash or other assets to a trustee who invests the amount transferred and pays income to HMH for a designated period designated. When the trust terminates, the principal is transferred to a donor's children or grandchildren at what may be significant gift and estate tax savings.

Charitable Remainder Trust

The type of trust is suited to a donor who would like to donate to HMH without relinquishing the income associated with the assets. The assets are placed in trust for the benefit of HMH while a fixed percent of the trust or annuity is paid to the donor, a family member, or other beneficiary. The donor may choose to have income paid for the life of a beneficiary or for a certain number of years. Upon termination of the trust, the principal is distributed to HMH. The donor can claim a charitable deduction the year that he/she creates the trust and allows the flexibility to transfer most types of property to the trust without paying capital gains tax. Under certain circumstances, the value of the trust will not be taxable for federal estate tax purposes.