Charitable Lead Trust

Protect Your Assets

If you want to make an impact now at the Sisters of St. Francis of Dubuque, Iowa 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 the Sisters of St. Francis of Dubuque, Iowa 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 the Dubuque Franciscans:

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 to the Dubuque Franciscans 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.

An Example of How It Works

Father smiling with children George would like to support the Dubuque Franciscans and receive tax benefits. 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 $60,000 (6% of the initial fair market value) to the Dubuque Franciscans each year for 15 years, which will total $900,000. After that, the balance in the trust reverts back to George. He receives an income tax charitable deduction of $614,445. Assuming the trust earns an average 8% annual rate of return, George receives approximately $1,600,286 at the end of the trust term.

*Based on a 5.2% charitable midterm federal rate. Deductions and calculations will vary depending on your personal circumstances.

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Next Steps

Contact Sr. Cathy Katoski, OSF at 563-583-9786 or katoskic@osfdbq.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.

Discover More

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