Charitable Lead Trust

(A Charitable Way to Pass Assets to Heirs)

How it works

	You contribute cash, securities or other property to a trust.
	The trust makes fixed annual payments to the Catholic Foundation for a specified term of years.
	When the trust ends, the remaining principal goes to your heirs.

Benefits

• You qualify for a gift tax deduction for the present value of the annuity payments to the Catholic Foundation.
• You can adjust the annuity payments and the term of the trust to reduce or even eliminate the transfer taxes due when the principal reverts to your heirs.
• All appreciation that takes place in the trust goes tax-free to your heirs.
• You can use your available estate tax credit ($1.5 million per person in 2004; $2.0 million per person beginning in 2006) to further reduce taxes on transfers to your heirs.
• You can have the satisfaction of making a significant gift to the Catholic Foundation now that reduces the taxes due on transfers to your heirs later.