A Gift in a Trust


Would you like to benefit from the tax savings that result from supporting The Servants of Mary, yet not have 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.

How It Works: You turn over assets to a trust that pays The Servants of Mary income over a number of years, the duration of which you choose. The longer the duration, the higher the gift tax savings for you. Then, when the term is up, the remaining trust assets go to your family or other beneficiaries you select.

This is a great way to transfer property to family members (typically children and grandchildren) at a minimal tax cost. This type of charitable lead trust (also called a non-grantor, or family lead trust) is especially appealing to benefactors who are financially comfortable enough that they can pass up investment income on some assets.

Would you prefer Fixed or Variable Payments?

A charitable lead trust can make payments in one of two ways: 1) a charitable lead annuity trust pays a fixed amount each year to The Servants of Mary, or 2) 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, the payments to our organization go up as well. Conversely, if the assets decrease in value, so do our payments.

Remember, you can create a lifetime charitable lead trust to take effect today, or set up the trust to take effect at your death (a testamentary trust.)

Benefits of Trusts:

• You support an organization you love while also making sure your family is taken care of after your lifetime.

• The gift qualifies for gift or estate tax savings based on the current value of the income paid to The Servants of Mary over the trust term.  Ask your legal and tax advisors for more information about your possible tax savings.

Contact Fr. Lawrence Choate with any questions about naming the Servants of Mary in your will or living trust. He’s always happy to help, without obligation.