Charitable Lead Trusts
If you want to benefit from the tax savings that result from supporting St. Joseph's Indian School, but you don't want to give up any assets that you'd like your family to receive someday, you can have it both ways with a charitable lead trust.
There are two ways charitable lead trusts make payments:
A charitable lead annuity trust pays a fixed amount each year to St. Joseph’s Indian School 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 St. Joseph’s Indian School go up as well.
Discover which type of charitable trust best fits your estate plan with the FREE guide, Trusts: Choose From Two Ways to Donate.View My Free Brochure
An Example of How it Works
George would like to support St. Joseph’s Indian School and receive tax benefits. He received a windfall amount of income and needs a large income tax deduction to offset it. Following his advisor’s recommendation, George funds a grantor lead annuity trust with assets valued at $1,000,000. George’s trust pays $60,000 (6% of the initial fair market value) to St. Joseph’s Indian School each year for 15 years, which will total $900,000. After that, the balance in the trust reverts back to George. He receives an income tax charitable deduction of $614,450. Assuming the trust earns an average 8% annual rate of return, George receives approximately $1,579,621 at the end of the trust term.
*Based on a 5.2% charitable midterm federal rate. Deductions and calculations will vary depending on your personal circumstances.
Delay Your Payments
If you are younger than 60 or don't need your payments immediately, you can set up a deferred gift annuity. This allows you to delay receiving payments until a later date — such as when you reach retirement. To learn more, view and download the FREE guide Deferred Gift Annuities: Plan Now, Benefit Later.
Calculate Your Benefits
Submit a few details and see how a charitable lead trust can benefit you.
SJIS minimum age for a one-life CGA is 50 and 54 for a two-life CGA. Please contact our planned giving office with any questions you may have.
- Contact Denise Hyland at 1-800-584-9200 or firstname.lastname@example.org to talk about supporting St. Joseph’s Indian School by setting up a charitable lead trust.
- Seek the advice of your financial or legal advisor.
- If you include St. Joseph’s Indian School in your plans, please use our legal name and Federal Tax ID.
Legal name: St. Joseph's Indian School
Address: P.O. Box 100, Chamberlain, SD 57325-0100
Federal Tax ID: 46-0235912