Provide for Your Loved Ones and the Dubuque Franciscans
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Charitable Lead Trusts
Do you want to benefit from the tax savings that result from supporting the Dubuque Franciscans, 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 Dubuque Franciscans 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 Dubuque Franciscans go up as well.
Check Out This Potential Scenario
George would like to support the Dubuque Franciscans 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 percent of the initial fair market value) to the Dubuque Franciscans 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 6 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.
Calculate Your Benefits
Submit a few details and see how a charitable lead trust can benefit you.
- Contact Sr. Cathy Katoski, OSF at 563-583-9786 or firstname.lastname@example.org to talk about supporting the Dubuque Franciscans by setting up a charitable lead trust.
- Seek the advice of your financial or legal advisor.
- If you include the Dubuque Franciscans in your plans, please use our legal name and federal tax ID.
Legal Name: Sisters of St. Francis of Dubuque, Iowa
Address: 3390 Windsor Ave., Dubuque, IA 52001-1311
Federal Tax ID Number: Please contact us for our federal tax ID number.
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. Annuities are subject to regulation by the State of California. Payments under such agreements, however, are not protected or otherwise guaranteed by any government agency or the California Life and Health Insurance Guarantee Association. A charitable gift annuity is not regulated by the Oklahoma Insurance Department and is not protected by a guaranty association affiliated with the Oklahoma Insurance Department. Charitable gift annuities are not regulated by and are not under the jurisdiction of the South Dakota Division of Insurance.