Planned Giving

Charitable Remainder Annuity Trusts

A charitable remainder annuity trust is a separately invested and managed charitable trust that pays you, your spouse, and/or other beneficiaries a fixed annuity income for life or a term of years. You receive a charitable income tax deduction for a portion of your gift to the trust. No additional gifts to the trust are permitted. After the annuity trust terminates, the accumulated principal or "remainder interest" goes to the Arlington Diocese.

  • Receive stable, predictable income (particularly appealing to older donors and income beneficiaries).
  • Avoid all upfront capital gains tax on any appreciated assets you transfer to the annuity trust.
  • Receive all or partly tax-free income if your annuity trust is invested for that objective.
  • Reduce your estate tax liability by removing a large taxable asset.
  • Make a satisfying and substantial gift to the Arlington Diocese during your lifetime.

Example

Comparison of Benefits: Unitrust and Annuity Trust

This example is based on a factor that changes monthly. Contact our office for a personal illustration based on the latest rates.

Assumptions:

> Beneficiaries aged 72 and 70
> 28% income tax bracket
> Holding $100,000 in stock with $50,000 cost basis

.

Unitrust

Annuity Trust

Contribution

$100,000

$100,000

Income Rate

5%

5%

First Year's Income

$5,000

$5,000

Future Income

Variable

$5,000/year

Charitable Deduction*

$43,764

$43,367

*Based on a Federal Discount Rate of 5%.

More

To learn more about charitable remainder annuity trusts, Email us, complete the Information Request Form, or call us so that we may assist you.




The Catholic Diocese of Arlington
200 N. Glebe Road
Suite 811
Arlington ,VA
(703) 841-2516