Planned and Endowed Gifts

Charitable Remainder Trusts

These come in two main types:

1. CHARITABLE REMAINDER ANNUITY TRUST provides for a fixed dollar payment. When you create the trust, you determine what that payment will be, and that amount never changes over the life of the trust. An annuity trust is attractive to someone who is looking to receive a certain, unvarying annual cash flow. Once the annuity trust is established, you cannot add to it.

2. CHARITABLE REMAINDER UNITRUST provides for an annual income payment that may vary each year. Payments are based on a fixed annual rate (at least five percent) that you set at the creation of the unitrust. Once a year, the trustee applies this rate to the fair market value of the trust's assets and makes payments accordingly. A unitrust is attractive to someone who is looking for a possible hedge against future inflation. You may make additional gifts to a unitrust.

Trust term. You may specify whether the remainder trust is to last for the lifetime of the income beneficiary(ies) or for a limited term of up to twenty years.

Investments. The trustee determines investment goals, taking into account the needs both of the income beneficiary and the Metropolitan Opera. A remainder trust is usually invested in a combination of investment funds, common or preferred stocks and government or corporate bonds. It may also hold other assets, such as real estate, although this poses complications that must be considered carefully in planning.

Choosing a Trustee. You may select one or more individuals, banks or trust companies to serve as trustee. (Technically you could serve as your own trustee, but for many practical reasons it usually is better to name an experienced and impartial trustee to administer your trust.) The Met itself does not directly administer charitable remainder trusts, but we have made special arrangements with a major financial institution with considerable trust and endowment management experience to serve, when requested, as trustee.

Trust Size. Each commercial trustee has its own fee schedule and minimum funding requirements, both of which you should consider in deciding how much principal to place in your trust.

Income Tax Charitable Deduction. The amount you may deduct on your income tax return is based on Federal tax regulations. These take into account the number and ages of income beneficiaries and the trust payout rate you specify. The lower the payout rate, the higher your deduction, and vice versa.

Use our gift calculator to discover the benefits you can receive from a gift to a charitable remainder trust for the Metropolitan Opera.

For more information or confidential help in planning your gift to support the future of the Metropolitan Opera, please complete this form or contact our Planned Giving office directly. Our experienced tax and estate planning staff can provide you with individual assistance and gift planning information, without obligation.

Office of Planned Giving
The Metropolitan Opera
30 Lincoln Center
New York, New York 10023
Telephone 212-870-7388
e-mail: EncoreSociety@mail.metopera.org