Provide for Your Loved Ones and the Diocese
CHARITABLE LEAD TRUSTS
Discover which type of charitable trust best fits your estate plan with the FREE guide Trusts: Choose From 2 Win-Win Ways to Donate.
Do you want to benefit from the tax savings that result from supporting the Diocese, yet 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 the Diocese 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 Diocese go up as well.
Check Out This Potential Scenario
George would like to support the Diocese and provide for his children. George received a windfall amount of income and needs a large income tax deduction to offset the income. Following his advisor's recommendation, George funds a grantor charitable lead annuity trust with assets valued at $1,000,000. George's trust pays $70,000 (7% of the initial fair market value) to the Diocese each year for 15 years, which will total $1,050,000. After that, the balance in the trust reverts back to George. He receives an income tax charitable deduction of $955,700. Assuming the trust earns an average 6% annual rate of return, George receives approximately $767,240 at the end of the trust term.
*Based on a 1.2% charitable midterm federal rate. Deductions and calculations will vary depending on your personal circumstances.
Next Steps
Contact John Mark Willcox at 318-868-4441 or jwillcox@dioshpt.org to talk about supporting the Diocese by setting up a charitable lead trust.
Seek the advice of your financial or legal advisor.
If you include the Diocese in your plans, please use our legal name and federal tax ID.
Legal Name: Diocese of Shreveport, Inc.
Address: 3500 Fairfield Avenue, Shreveport, LA 71104
Federal Tax ID Number: Contact John Mark Willcox at the Catholic Center.
Discover which type of charitable trust best fits your estate plan with the FREE guide Trusts: Choose From 2 Win-Win Ways to Donate.
Information contained herein was accurate at the time of posting. 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 any examples are for illustrative purposes only. References to tax rates include federal taxes only and are subject to change. State law may further impact your individual results.