Benefits of a Charitable Remainder Trust:

• Convert highly appreciated assets to provide income for yourself and/or spouse or named beneficiaries without incurring capital gains tax.
• Receive a substantial income tax deduction upon the creation of the trust.
• Reduce the amount of property subject to administration in your estate.
• Provide estate tax savings to your heirs.
• Receive professional investment management of the assets involved.

How it Works:

• You transfer money, stock, or other property to a trustee.
• The trustee then pays you and/or your spouse or other beneficiaries an annual income for life or fixed period of time (not to exceed 20 years).
• After the lifetime income payments have been made, the trustee transfers whatever amount is left to the School Sisters of Notre Dame and any other charities you designate.

Types of Trusts:
The lifetime payments will depend on which kind of charitable remainder trust you choose. An annuity trust pays a fixed sum of money each year. Additional contributions to the trust are prohibited. A unitrust pays a fixed percentage of the total value of the assets in the trust each year. Additional contributions are permitted.

Wealth Replacement Trust:
Some donors utilize a portion of the additional income to purchase life insurance inside another irrevocable trust to replace some or all of the assets going
to charity that would have ultimately passed to the donor's heirs.

Charitable Lead Trust:
Another form of a charitable trust is a Lead Trust. It is the reverse of a Charitable Remainder Trust because the donor creates a trust whereby the income interest goes to a charitable organization for a period of years or for the life of an individual or individuals. The remainder interest in the trust is either retained by the donor or given to a noncharitable beneficiary, usually a family member. The value of the income interest qualifies for a charitable deduction (with a possible limitation on the total amount of the deduction) and the remainder is subject to a gift tax if transferred to someone other than the donor. However, the entire trust corpus passes to the remainder beneficiary without additional tax even if the trust principal increases in value.

Consult a Qualified Professional:
Because the language of charitable trusts provides the rules by which the trust will operate, it is important that the trust be drafted by a qualified attorney to insure that the trust adheres to the provisions prescribed by law and the regulations for charitable remainder or lead trusts.

For More Information Call, Write, or Email:

School Sisters of Notre Dame
Planned Giving Office
13105 Watertown Plank Road
Elm Grove, WI 53122-2291
Phone: (262) 787-1034 Fax: (262) 207-0050
Email: ssndpg@ssnd-milw.org