Planned Giving

Charitable Remainder Trusts

The advantages of a Charitable Remainder Trust

If you have built a sizeable estate and are looking for ways to receive reliable payments, consider a charitable remainder trust. These types of gifts offer you tax benefits and the option for income. There are two ways to receive payments and each has its own benefits:

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.

An Example of how it works

Adrian wants to make a gift to the Archdiocese but would also like more income in the future. Adrian creates a charitable remainder unitrust with annual lifetime payments to her equal to 6 percent of the fair market value of the trust assets as revalued annually. She funds the trust with assets valued at $500,000.

Adrian receives $30,000 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 $275,725* in the year she creates and funds the trust. This deduction saves Adrian $90,989 in her 33 percent tax bracket.

*Based on annual payments and a 2.4 percent charitable midterm federal rate. Deductions vary based on income earned.

Fund your donation with

  • Cash (Link)
  • Appreciated Securities (Link)
  • Closely Held Stock  (Link)
  • Real Estate
  • Retirement Plan Assets (Link)
  • Tangible Personal Property (Link)

Next Steps

  • For additional information on setting up a charitable remainder trust, please contact:

Elin R. Schriver, Planned Giving Relationship Manager
Archdiocese of Chicago
835 North Rush Street
Chicago, IL 60611-3020
312.534.5396
eschriver@archchicago.org

  • Seek the advice of your financial or legal advisor.
  • If you include the Archdiocese in your plans, please use our legal name and federal tax ID.

Legal Name: Archdiocese of Chicago or The Catholic Bishop of Chicago
Federal Tax ID Number: 36-2170826

The information on this website is not intended as legal or tax advice. For such advice, please consult an attorney or tax advisor. Figures cited in examples are for hypothetical purposes only and are subject to change. References to estate and income taxes include federal taxes only. State income/estate taxes or state law may impact your results.