Georgia O'Keeffe Museum
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Charitable Lead Trust

Protect Your Assets

You can benefit from the tax savings that result from supporting the Georgia O'Keeffe Museum without giving up the assets that you'd like your family to receive someday with a donation in the form of a charitable lead trust.

There are two ways that charitable lead trusts make payments to the O'Keeffe Museum:

A charitable lead annuity trust pays a fixed amount each year to the O'Keeffe Museum and is more attractive when interest rates are low.

A charitable lead unitrust pays a variable amount each year based on the value of the assets in the trust. With a unitrust, if the trust's assets go up in value, for example, the payments to the O'Keeffe Museum go up as well.

An Example of How It Works

Father smiling with childrenGeorge would like to support the O'Keeffe Museum and provide for his children. George received a windfall amount of income and needs a large income tax deduction to offset the income. Following his advisor's recommendation, George funds a grantor charitable lead annuity trust with assets valued at $1,000,000. George's trust pays $70,000 (7 percent of the initial fair market value) to the O'Keeffe Museum each year for 15 years, which will total $1,050,000. After that, the balance in the trust reverts back to George. He receives an income tax charitable deduction of $854,311. Assuming the trust earns an average 6 percent annual rate of return, George receives approximately $767,240 at the end of the trust term.

*Assuming annual payments and a 3.2 percent charitable midterm federal rate.

Next Steps

  1. Contact Jennifer Pedneau at 505.946.1035 or [email protected] to talk about supporting the O'Keeffe Museum by setting up a charitable lead trust.
  2. Seek the advice of your financial or legal advisor.
  3. If you include the O'Keeffe Museum in your plans, please use our legal name and federal tax ID.

Legal Name: Georgia O'Keeffe Museum
Address: 217 Johnson Street, Santa Fe, NM 87501-1826
Federal Tax ID Number: 85-0437114

A charitable bequest is one or two sentences in your will or living trust that leave to the Georgia O'Keeffe Museum a specific item, an amount of money, a gift contingent upon certain events or a percentage of your estate.

an individual or organization designated to receive benefits or funds under a will or other contract, such as an insurance policy, trust or retirement plan

I give, devise, and bequeath to the Georgia O'Keeffe Museum (Tax ID#:85-0437114), a not-for-profit corporation existing under the laws of the State of New Mexico, and located in Santa Fe, New Mexico __________ (percent of your estate, dollars, property, securities, etc.) to be used to advance the mission of the Georgia O'Keeffe Museum.

able to be changed or cancelled

A revocable living trust is set up during your lifetime and can be revoked at any time before death. They allow assets held in the trust to pass directly to beneficiaries without probate court proceedings and can also reduce federal estate taxes.

cannot be changed or cancelled

tax on gifts generally paid by the person making the gift rather than the recipient

the original value of an asset, such as stock, before its appreciation or depreciation

the growth in value of an asset like stock or real estate since the original purchase

the price a willing buyer and willing seller can agree on

The person receiving the gift annuity payments.

the part of an estate left after debts, taxes and specific bequests have been paid

a written and properly witnessed legal change to a will

the person named in a will to manage the estate, collect the property, pay any debt, and distribute property according to the will

A donor advised fund is an account that you set up but which is managed by a nonprofit organization. You contribute to the account, which grows tax-free. You can recommend how much (and how often) you want to distribute money from that fund to the O'Keeffe Museum or other charities. You cannot direct the gifts.

An endowed gift can create a new endowment or add to an existing endowment. The principal of the endowment is invested and a portion of the principal’s earnings are used each year to support our mission.

Tax on the growth in value of an asset—such as real estate or stock—since its original purchase.

Securities, real estate, or any other property having a fair market value greater than its original purchase price.

Real estate can be a personal residence, vacation home, timeshare property, farm, commercial property, or undeveloped land.

A charitable remainder trust provides you or other named individuals income each year for life or a period not exceeding 20 years from assets you give to the trust you create.

You give assets to a trust that pays our organization set payments for a number of years, which you choose. The longer the length of time, the better the potential tax savings to you. When the term is up, the remaining trust assets go to you, your family or other beneficiaries you select. This is an excellent way to transfer property to family members at a minimal cost.

You fund this type of trust with cash or appreciated assets—and may qualify for a federal income tax charitable deduction when you itemize. You can also make additional gifts; each one also qualifies for a tax deduction. The trust pays you, each year, a variable amount based on a fixed percentage of the fair market value of the trust assets. When the trust terminates, the remaining principal goes to the O'Keeffe Museum as a lump sum.

You fund this trust with cash or appreciated assets—and may qualify for a federal income tax charitable deduction when you itemize. Each year the trust pays you or another named individual the same dollar amount you choose at the start. When the trust terminates, the remaining principal goes to the O'Keeffe Museum as a lump sum.

A beneficiary designation clearly identifies how specific assets will be distributed after your death.

A charitable gift annuity involves a simple contract between you and the O'Keeffe Museum where you agree to make a gift to the O'Keeffe Museum and we, in return, agree to pay you (and someone else, if you choose) a fixed amount each year for the rest of your life.
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