Trusts

Charitable Remainder Trust
A charitable remainder trust is an irrevocable trust which pays income to the beneficiaries designated by the donor. At the end of a specified term the remainder in the trust goes to Salesianum School. The donor may act as trustee and make investment decisions with regard to the trust, and may increase the value of the trust at any time. The creation of a charitable remainder trust provides the donor with a charitable deduction in any year in which a transfer of property is made to the trust.

Charitable Lead Trust
If you have a large estate and are looking for ways to pass more on to your heirs, a Charitable Lead Trust may be an excellent plan for you. A Charitable Lead Trust is a gift plan that allows you to transfer assets to future generations at a significantly reduced gift or estate tax cost, while providing a stream of income to Salesianum for a term of years. The technical name for this type of Charitable Lead Trust is a “Non-Grantor Charitable Lead Annuity Trust.” It is called a “non-grantor” trust because the assets eventually revert to non-charitable beneficiaries other than the grantor. It is called a “Lead” trust because it leads with a stream of income to charity before the assets revert to the remainder beneficiaries. It is called an “Annuity” trust because it provides fixed annual payments to charity during the term of the trust.

What are the advantages?
The main advantage of a Charitable Lead Annuity Trust (CLAT) is that the term and payout rate of the trust can be adjusted to reduce or even “zero out” the gift tax you owe on the asset transfer to your heirs. In other words, it is possible to make a large asset transfer to your heirs tax-free, while also benefiting Salesianum. In addition, any appreciation that takes place inside of the trust goes tax-free to your heirs. This makes a Charitable Lead Trust a powerful wealth transfer tool.