Planned Giving

Your Options with a Charitable Lead Trust

With a donation in the form of a charitable lead trust, you can benefit from the tax savings that result from supporting Archdiocese of Chicago without giving up the assets that you'd like your family to receive someday.

There are two ways that charitable lead trusts make payments to the Archdiocese:

  • A charitable lead annuity trust pays a fixed amount each year 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 the Archdiocese go up as well.

An Example of How It Works

Theodore would like to support the Archdiocese and provide for his children. Following his advisor's recommendation, Theodore funds a charitable lead annuity trust with assets valued at $2,500,000.

Theodore’s trust pays $175,000 (7 percent of the initial fair market value) to the Archdiocese each year for 15 years, which will total $2,625,000. After that, the balance in the trust goes to his children. Assuming a 6 percent investment return, the children will receive approximately $1,918,101.

His gift tax deduction is $2,182,775* against the $2,500,000 of assets. Therefore, only the difference ($317,225) is subject to gift tax, which is offset against his lifetime gift tax exclusion. After that, the remaining trust assets and all their growth will pass to his family at zero additional cost in gift and estate taxes. Had Theodore given the $2,500,000 outright to his children, it would have been a taxable gift.

*Assuming annual payments and a 2.4 percent charitable midterm federal rate.

Fund Your Donation With

  • Cash (Link)
  • Appreciated Securities (Link)
  • Real Estate (Link)
  • Tangible Personal Property (Link)

Next Steps

  • To talk about supporting the Archdiocese by setting up a charitable lead trust, please contact:
    Elin R. Schriver, Planned Giving Relationship Manager
    Archdiocese of Chicago
    835 North Rush Street
    Chicago, IL 60611-3020
  • 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.
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.