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Pooled Income Fund

A contribution or bequest to Moody's Pooled Income Fund allows you to provide the security of life income for yourself or your loved ones.

Flowchart: Donor transfers stock or cash to a pooled income fund. The donor receives payouts from the pooled income fund and the Moody receives the remainder.

How a Pooled Income Fund works

The Moody Pooled Income Fund is a trust that was established and managed by Moody. Many donors contribute to this fund, retaining the right to receive income for life from the fund. The income may be paid to the donor, or a designated beneficiary. The income interest may extend for one or more lives.

When you make a contribution to the fund, you are assigned a certain number of units in the fund, based on the amount of the contribution relative to the overall value of the fund. All of the income earned in the fund is distributed to beneficiaries, in accordance with their units. All income received by the beneficiaries is taxable.

Does a Pooled Income Fund provide tax benefits?

Contributions to pooled income funds qualify for charitable income, gift, and estate deductions. Deductions are based on the discounted present value of the remainder interest of the contribution. Donors can also avoid recognition of capital gains on the transfer of appreciated property to the fund.

A contribution to the pooled income fund is irrevocable, principal cannot be withdrawn from the fund. Upon the beneficiary's death, the value of the units is distributed to Moody.

Contact us

To learn more about pooled income funds or to request an illustration please contact us. We would be happy to assist you and answer your questions.