What are life income gifts and why are they so popular with certain donors?
You may make a life income gift to the Pritzker Military Library by irrevocably transferring securities, money, or other marketable property to the Library. Charitable remainder trusts and charitable gift annuities are examples of life income gifts. In a charitable gift annuity, the Pritzker Military Library manages the investment of the trust assets and pays a guaranteed fixed income to you, your designated beneficiaries, or both. The income payments continue for the beneficiary's life or for a term of up to 20 years. After the trust terminates, the Pritzker Military Library receives the fund principal. A charitable remainder trust is managed by a third party trustee and pays you income based on the value of the trust or the net income earned by the trust. This type of life income arrangement does not guarantee you income for life. After the trust terminated, the Pritzker Military Library receives the remaining fund principal. You will receive an immediate income tax deduction for both types of gifts as well as avoid an immediate capital gains tax liability on appreciated securities.

What are the tax advantages of life income gifts and bequests?
Gifts to the Pritzker Military Library, as to other charitable organizations, are not subject to gift or estate taxes. For example, a $10,000 bequest to a charity results in the charity receiving the full $10,000, free of tax. Since estate tax rates are still as high as 55 percent, that same gift made to an individual (other than a spouse) may result in $5,500 going to the IRS and on $4,500 going to that individual. In the case of life income gifts, a tax deduction for the present value of the "remainder interest" in the donated assets will be given to the donor. In addition, the sale of appreciated assets within a trust used to fund a life income arrangement does not trigger capital gains or other income taxes on the sale.

How can the Pritzker Military Library help me with planned gifts such as life income gifts and bequests?
The Pritzker Military Library has a professional staff and financial associates who can help you to coordinate the best gift for you to give the Library. Planned Gifts are described as the gift that gives more but costs the donor less, while unplanned gifts cost the donor more but give the charity less. The Pritzker Military Library and our associates can help you determine what the best gift is for you and your particular circumstances so that you may minimize taxes and give the greatest gift possible to the Library. Above all, we suggest that you plan on setting up a Trust or Bequest with an outside attorney or financial consultant to be sure that your needs is met. We also encourage you or your advisor to contact us in advance to discuss the details so that we can ensure that your gift will be used as you intend.

If you have questions, please feel free to call me at: 312.587.0234 or e-mail Ryan Yantis, Executive Director.