What Can I Give?

If you are looking for a way to pass on some of your assets to your family while reducing or eliminating gift or estate taxes, a charitable lead trust is an excellent option.

BENEFITS OF A CHARITABLE LEAD TRUST

• Receive a gift or estate tax charitable deduction
• Pass inheritance on to family at a reduced or zero cost
• Establish a vehicle from which you can make annual gifts to charity

HOW A CHARITABLE LEAD TRUST WORKS

1. You make a contribution of your property to fund a trust that pays The Catholic Foundation income for a number of years.
2. You receive a gift or estate tax deduction at the time of your gift.
3. After a period of time, your family receives the trust assets plus any additional growth in value.

Are your appreciated assets, such as stock, bonds or real estate, producing little or no income?

If you sell your appreciated assets, you will pay a large capital gains tax. A sale and charitable remainder unitrust may be the solution to avoid capital gains tax.

BENEFITS OF A SALE AND UNITRUST

• Receive cash from the sale. You can use this cash to purchase another residence, to save for retirement, to travel, to meet your daily needs or to meet some other financial goal
• Receive income from the unitrust for the rest of your life and future retirement
• Obtain an income tax deduction that may reduce your tax bill this year
• Further the work of The Catholic Foundation with your gift

HOW A SALE AND UNITRUST WORKS

1. You establish a charitable remainder unitrust and transfer a portion of your assets to the trust.
2. The assets are then sold. You receive cash from the sale, and the rest of the sale’s proceeds are paid to the charitable unitrust.
3. The trust will provide you with income for the rest of your life.
4. You receive a charitable deduction this year to offset your tax on the cash proceeds that you receive from the sale.

OTHER THINGS TO NOTE

When transferring a portion of your primary residence to fund a unitrust, you may apply your one-time home exclusion to reduce or eliminate capital gains tax that would otherwise be due from the sale. Your tax advisor can assist you to determine if you should utilize this strategy.

You may desire to leave your home or farm to The Catholic Foundation at your death but would also like to receive a current charitable income tax deduction. A life estate reserved might offer the solution you need!

BENEFITS OF A LIFE ESTATE

• Receive a federal income tax deduction for the value of the remainder interest in your home or farm
• Preserve your lifetime use and control of your home or farm
• Create a life estate based on more than one life. This will preserve the use of the property for you and a loved one, such as a spouse or dependent child

HOW A LIFE ESTATE WORKS

1. You deed your home or farm to The Catholic Foundation. The deed will include a provision that gives you the right to use your home or farm for the rest of your life and that of any other life estate party named in the deed.
2. You and The Catholic Foundation sign a maintenance, insurance, and taxes (MIT) agreement to explain that you will do your best to keep the property in good condition and that you will maintain property insurance and pay the property taxes.
3. When the owners of the life estate have passed away, your home or farm will belong to The Catholic Foundation. We will use or sell the property to further our charitable work.

Do you have property that you would like to sell? Are you looking for a strategy to reduce your income taxes? A bargain sale might be the right strategy for you.

BENEFITS OF A BARGAIN SALE

• Avoid capital gains tax on your charitable gift
• Receive a tax deduction that will reduce your tax bill this year
• Take the cash received from the sale and reinvest it to create future income save for retirement, buy new property or achieve other financial goals
• Further the work of The Catholic Foundation with your gift

HOW A BARGAIN SALE WORKS

1. You sell The Catholic Foundation your property for a price less than fair market value.
2. You receive cash from the sale.
3. You can take a charitable deduction for the value of your gift which is the difference between the fair market value of the property less the sale price.
4. While you may owe some tax on the sale proceeds you receive from The Catholic Foundation, the charitable deduction from your gift could offset some, most or all of your capital gains taxes associated with the sale.

MORE ON BARGAIN SALES

A bargain sale may be accomplished even if you have a mortgage on your property. Because relief from indebtedness can have tax implications, please consult with your tax advisor prior to completing a gift of a bargain sale.