Charitable Remainder Trusts
Looking for a way to give St. Joseph’s Indian School a truly significant gift? If you have built up a sizable estate and are also looking for ways to receive reliable payments, you may want to check out the advantages of setting up a charitable remainder trust.
Benefits of a charitable remainder trust include:
- Potential for a partial charitable income tax deduction
- Potential for increased income
- Up-front capital gains tax avoidance
There are two ways to receive payments with charitable remainder trusts:
The annuity trust pays you, each year, the same dollar amount you choose at the start. Your payments stay the same, regardless of fluctuations in trust investments.
The unitrust pays you, each year, a variable amount based on a fixed percentage of the fair market value of the trust assets. The amount of your payments is redetermined annually. If the value of the trust increases, so do your payments. If the value decreases, however, so will your payments.
Discover which type of charitable trust best fits your estate plan with the FREE guide, Trusts: Choose From 2 Win-Win Ways to Donate.View My Free Brochure
An Example of How It Works
Susan, 75, wants to make a gift to St. Joseph’s Indian School but would also like more income in the future. Susan creates a charitable remainder unitrust with annual lifetime payments to her equal to 5% of the fair market value of the trust assets as revalued annually. She funds the trust with assets valued at $500,000.
Susan receives $25,000 the first year from the trust. Subsequent payment amounts vary each year depending on the annual valuations of the trust assets. She is eligible for a federal income tax charitable deduction of $301,905* in the year she creates and funds the trust. This deduction saves Susan $96,610 in her 32% tax bracket.
*Based on a 3.6% 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 Plan for Retirement With a Deferred Gift Annuity.
Calculate Your Benefits
Submit a few details and see how a charitable remainder trust can benefit you.
- 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 remainder 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