Charitable Lead Trust
Protect Your Assets
You can benefit from the tax savings that result from supporting St. Philip the Deacon without giving up the assets that you'd like your family to receive someday with a donation in the form of a charitable lead trust.
There are two ways that charitable lead trusts make payments to St. Philip the Deacon:
A charitable lead annuity trust pays a fixed amount each year to St. Philip the Deacon and is more attractive when interest rates are low.
A charitable lead unitrust pays a variable amount each year based on the value of the assets in the trust. With a unitrust, if the trust's assets go up in value, for example, the payments to St. Philip the Deacon go up as well.
An Example of How It Works
George would like to support St. Philip the Deacon and provide for his children. George received a windfall amount of income and needs a large income tax deduction to offset the income. Following his advisor's recommendation, George funds a grantor charitable lead annuity trust with assets valued at $1,000,000. George's trust pays $70,000 (7% of the initial fair market value) to St. Philip the Deacon each year for 15 years, which will total $1,050,000. After that, the balance in the trust reverts back to George. He receives an income tax charitable deduction of $955,700. Assuming the trust earns an average 6% annual rate of return, George receives approximately $767,240 at the end of the trust term.
*Based on a 1.2% charitable midterm federal rate. Deductions and calculations will vary depending on your personal circumstances.
Calculate Your Benefits
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- Contact Pastor Tim Westermeyer at (763) 475-7136 or email@example.com to talk about supporting St. Philip the Deacon by setting up a charitable lead trust.
- Seek the advice of your financial or legal advisor.
- Determine the recipient of your gift, naming either St. Philip the Deacon or St. Philip the Deacon Foundation.
- If you include St. Philip the Deacon in your plans, please use our legal name and federal tax ID.
Legal Name: St. Philip the Deacon Lutheran Church OR St. Philip the Deacon Foundation
Address: 17205 County Road Six, Plymouth, MN 55447
Federal Tax ID Number: Please contact us for our federal tax ID number.
See which type of charitable trust best fits your estate plan with the FREE guide Choose From 2 Win-Win Ways to Donate.View My Guide