Charitable Annuity Remainder Trust

How it Works

 

  • You transfer cash, securities, or other appreciated property into a trust.

  • The trust makes fixed annual payments to you or to beneficiaries you name.

  • When the trust terminates, the remainder passes to the Incarnate Word Academy Foundation to be used as you have directed.


Benefits

 

  • Receive income for life or a term of up to 20 years in return for your gift.

  • Receive an immediate income tax deduction for a portion of your contribution.

  • Pay no upfront capital gains tax on appreciated assets you donate.

  • Your trust can meet personal or family needs that are tied to a specific time frame, such as tuition payments.

Charitable Remainder Annuity Trust: The Details

 

​It is a great way to make a gift, receive fixed payments, and defer or eliminate capital gains tax. A charitable remainder annuity trust provides a steady cash flow and can be more beneficial than keeping an asset or selling it outright.

Is this gift right for you?


A charitable remainder annuity trust is for you if…

 

  • You want to make a major gift to the school while retaining or increasing your income from the assets you contribute.

  • You hold appreciated stocks or bonds and want to avoid the capital gains tax cost of a sale.

  •  You prefer the stability of a fixed income.

  • You hold tax-free bonds and want to continue to draw tax-free income from your gift plan.

A charitable remainder annuity trust is a separately invested and managed charitable trust that pays you, and/or other beneficiaries, a fixed annuity for life, or for a term of up to 20 years. You receive a charitable income tax deduction for a portion of the value of the assets you place in the trust. By law, no additional gifts to the trust are permitted once the trust is initially funded. After the annuity trust terminates, the balance or "remainder interest" goes to the Incarnate Word Academy Foundation to be used as you designate.

 

Planning Point​

 

With a charitable remainder annuity trust you can:

 

  • Receive stable, predictable income equal to no less than 5% of the original gift.

  • Avoid all upfront capital gains tax on any appreciated assets you contribute to the trust.

  • Receive income that may be taxed favorably.

  • Reduce your estate tax liability.

Please contact the IWA Advancement Office at (361) 883-8229 or Sister Martha Ann Snapka
at (361) 877-1232 so that we can assist you through every step of the process.