How do gifts in trust work?
Gifts in trust, like charitable gift annuities, are types of life-income plans. Life-income plans are arrangements under which you make a gift of cash or property (stocks, bonds, real estate) in exchange for a stream of income for life. In other words, you transfer an asset, but reserve the right to receive payments from the asset. There are several benefits from this type of gift arrangement: • A stream of income for life, to more than one beneficiary if you wish • A charitable income tax deduction in the year you make the gift, plus a carryover of up to five years of any unused deduction • A charitable estate tax deduction for a portion of the gift • A gift that will benefit Allegheny College in the future Life-income gifts may be made in the form of trusts or gift annuities. In its simplest terms, a trust is an arrangement under which an individual transfers legal title to property to another (the trustee) who manages the property for the benefit of the individuals and/or organizati
