Charitable Lead Trust
Protect Your Assets
You can benefit from the tax savings that result from supporting your parish or the Diocese of Scranton 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 the Diocese of Scranton:
A charitable lead annuity trust pays a fixed amount each year to the Diocese 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 the Diocese of Scranton go up as well.
An Example of How It Works
George would like to support the Diocese of Scranton 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. In this example, George's trust would pay $70,000 (7 percent of the initial fair market value) to the Diocese of Scranton 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 $854,311. Assuming the trust earns an average 6 percent annual rate of return, George receives approximately $767,240 at the end of the trust term.
*Assuming annual payments and a 3.2 percent charitable midterm federal rate.
Calculate Your Benefits
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- Contact Jim Bebla at 570-207-2250 or Jim-Bebla@dioceseofscranton.org to talk about supporting the Diocese of Scranton by setting up a charitable lead trust.
- Seek the advice of your financial or legal advisor.
- If you include the Diocese of Scranton in your plans, please use our legal name and federal tax ID.
Legal Name: Roman Catholic Diocese of Scranton
Address: 300 Wyoming Avenue, Scranton, PA 18503
Federal Tax ID Number: 24-0798640
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