The CCHS Foundation Legacy Society
Planned Giving
Charitable Remainder Trusts
If you have built a sizable estate and also are looking for ways to receive reliable payments, consider a charitable remainder trust. At the end of the trust term, the balance in the trust goes to Central Catholic High School Foundation.
These types of gifts may offer you tax benefits and the option for income. There are two ways to receive payments and each has its own benefits:
The annuity trust pays you, each year, the same dollar amount you choose at the start. Your payments stay the same, regardless of fluctuations in trust investments.
The unitrust pays you, each year, a variable amount based on a fixed percentage of the fair market value of the trust assets. The amount of your payments is redetermined annually. If the value of the trust increases, so do your payments. If the value decreases, however, so will your payments.
An Example of How It Works
Tracy, 75, wants to make a gift to Central Catholic High School Foundation, but would also like more income in the future. Tracy creates a charitable remainder unitrust with annual lifetime payments to her equal to 5% of the fair market value of the trust assets as revalued annually. She funds the trust with assets valued at $500,000.
Tracy receives $25,000 the first year from the trust. Subsequent payment amounts vary each year depending on the annual valuations of the trust assets. She is eligible for a federal income tax charitable deduction of $290,360* in the year she creates and funds the trust. This deduction saves Tracy $92,915 in her 32% tax bracket.
*Based on a 5.2% charitable midterm federal rate. Deductions and calculations will vary depending on your personal circumstances.
Next Steps
- Contact Jim Pecchenino, '72 at (209) 968-1120 or pecchenino@cchsca.org to talk about supporting Central Catholic High School Foundation by setting up a charitable remainder trust.
- Seek the advice of your financial or legal advisor.
- If you include Central Catholic High School Foundation in your plans, please use our legal name and federal tax ID.
About Central Catholic
Faithful to our Catholic Tradition, our mission is to witness to the Gospel while building an educational community that inspires the spiritual, academic and social development of young adults.
Central Catholic Students Are:
Academically-Prepared
Spiritually-Developed
Socially-Responsible
Globally-Conscious
Central Catholic Students Are:
Academically-Prepared
Spiritually-Developed
Socially-Responsible
Globally-Conscious
