Gifts That Provide Lifetime Income
Charitable Remainder Trust
A Charitable Remainder Trust (CRT) is a powerful engine for benefiting yourself, your heirs, and the Academy of Notre Dame. It provides you and/or other beneficiaries you name with a stream of income for life or a period of years. After the trust terminates, the accumulated principal or “remainder interest” goes to the Academy of Notre Dame de Namur.
How it works
You can use almost any asset to fund a CRT, including cash, appreciated securities, real estate, or business interests. You can choose to receive variable or fixed income beginning immediately for life or any term of years you specify, or you can choose to defer income to sometime in the future. You can choose from two basic types of CRTs.
Unitrust (CRUT): pays a variable income (typically between 5-6% per year) based on a fixed percentage of the trust assets as revalued once each year. Your interest can increase if the trust principal grows over time.
Annuity Trust (CRAT): pays a fixed annual income determined at the outset, often preferred by those who are interested in the security of a constant return.
- You avoid all capital gains tax on any appreciated assets that you contribute to a CRT.
- You receive a substantial charitable income tax deduction in the year of the gift.
- You can name multiple charities as remainder beneficiaries.
- You can add to your CRT at any time (unitrusts only).
- Any assets you contribute to a CRT are removed from your estate, reducing your estate tax liability.
- You will have the satisfaction of knowing that you are benefiting future generations of Academy students.
Charitable Gift Annuity
A charitable gift annuity (CGA) offers you an opportunity to increase your cash flow, avoid substantial capital gain taxes, and make a generous gift to the future of the Academy of Notre Dame. A gift annuity is a simple contract between you and the school. In exchange for your gift of cash or stock, Notre Dame makes fixed quarterly income payments for life to you, you and your spouse, or someone you name. Income beneficiaries must be 68 or older. Rates are based on life expectancy; the older the income beneficiary, the higher the rate. Annuity payments are partially tax free, and you will receive an immediate income tax deduction for the value of the remainder that will support Notre Dame. The Advancement Office can quantify all of these benefits in a personalized illustration that you and your advisor can review before you make your decision.
- A Notre Dame CGA can be funded with as little as $10,000.
- The Academy of Notre Dame sets up and manages your CGA at no cost to you.
- CGAs pay attractive rates compared to bank accounts, certificates of deposit, and stock dividends.
- Your income payments are fixed and guaranteed by the assets of the Academy.