Charitable Lead Trust

Protect Your Assets

If you want to make an impact now at Saint Joseph Academy and also provide for your family later, consider setting up a charitable lead trust. You transfer cash or other assets to a trust that makes payments to Saint Joseph Academy for a period of time. When the term is up, the remaining trust passes to your family or other beneficiaries you select.

There are two ways that charitable lead trusts make payments to Saint Joseph Academy:

A charitable lead annuity trust pays a fixed amount each year to Saint Joseph Academy and is more attractive when interest rates are low.

A charitable lead unitrust pays a variable amount each year to Saint Joseph Academy 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 Saint Joseph Academy go up as well.

An Example of How It Works

Father smiling with children George would like to support Saint Joseph Academy 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 (seven percent of the initial fair market value) to Saint Joseph Academy 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 $854,311. Assuming the trust earns an average six percent annual rate of return, George receives approximately $767,240 at the end of the trust term.

*Assuming annual payments and a 3.2 percent charitable midterm federal rate.

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Next Steps

  1. Contact Constance S. Sipple, CFRE at 216.671.0166 or csipple@sja1890.org to talk about supporting Saint Joseph Academy by setting up a charitable lead trust.
  2. Seek the advice of your financial or legal advisor.
  3. If you include Saint Joseph Academy in your plans, please use our legal name and federal tax ID.

Legal name: St. Joseph Academy
Address: 3470 Rocky River Drive, Cleveland, OH 44111
Federal tax ID number: 34-1618516

Discover More

See which type of charitable trust best fits your estate plan with the FREE guide Trusts: Choose From Two Ways to Donate.

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Personal Estate Planning Kit

Our Top Free Resource

This comprehensive estate planning kit helps you protect your family and establish your legacy. FREE!

Download My Kit