Charitable Remainder Trust

You can make a gift of cash, appreciated securities, or real estate to a charitable remainder trust that pays income to you or others you select for life or a term of years. At the end of the trust's term, the remaining principal is distributed to Benedictine College Preparatory and/or Saint Gertrude High School for its greatest needs, or for a purpose you have specified. You can supplement your retirement income, help to pay for a child's or grandchild's education, or provide support for an elderly parent with income from a charitable remainder trust, and still give significant support to advance the education at Benedictine College Preparatory and/or Saint Gertrude High School, all while receiving tax benefits. You may even increase your income from giving appreciated stock or real estate over what those assets are currently providing for you. This plan works best for people age 55 or older.

 

These types of gifts may offer you tax benefits and the option for income. There are two ways to receive payments and each has its own benefits:

Pete, 75, wants to make a gift to Benedictine College Preparatory and/or Saint Gertrude High School but would also like more income in the future. Pete creates a charitable remainder unitrust with annual lifetime payments to his equal to 5% of the fair market value of the trust assets as revalued annually. He funds the trust with assets valued at $500,000.

Pete receives $25,000 the first year from the trust. Subsequent payment amounts vary each year depending on the annual valuations of the trust assets. He is eligible for a federal income tax charitable deduction of $299,845* in the year he creates and funds the trust. This deduction saves Pete $95,950 in his 32% tax bracket.