Life Income Plans
You can make a substantial gift to the Church while still earning income
from
the donated assets. These life income plans are some of the most
flexible
and
fruitful options available to donors. They allow you to provide income
for
yourself,
your heirs, or both; avoid significant capital gains and estate taxes;
and
satisfy your wish to make a substantial gift to your parish or the Archdiocese.
This
is how it works:
You fund the trust with a significant, irrevocable gift to the Archdiocese
to
benefit
the Church's programs. (The gift must be irrevocable to qualify for
the
federal
charitable deduction.) The Church invests the gift, and you or your
designee
receive income for as long as you choose: for a definite term of not
more
than 20 years, or for the rest of your life. At the end of that time,
the
remaining
principal benefits the Church in a way that you specify.
You may establish a trust using assets such as real estate, stock, or cash.
Funding
it with appreciated long-term property enables you to protect your profit
or
reinvest for a higher yield, while avoiding capital gains taxes.
You thereby
maximize
the value and the benefit of the property, both as income and as a gift.
There are two basic types of life income trusts: annuity trusts and unitrusts.
The
annuity trust pays a fixed dollar amount, while the unitrust pays a fixed
percentage.
With the annuity trust, your income will be the same each year,
regardless
of the value of the trust. With the unitrust, your income will go
up or
down
as the value of the trust itself fluctuates.
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