Charitable Remainder Trusts

Secure Your Future While Supporting Catholic Ministries

A Charitable Remainder Trust is a versatile giving option that allows you to support the mission of the Catholic Legacy Foundation of Acadiana while securing financial benefits for yourself or your loved ones. 

Charitable Remainder Trusts

A Charitable Remainder Trust (CRT) is a versatile giving option that allows you to support the mission of the Catholic Legacy Foundation of Acadiana while securing financial benefits for yourself or your loved ones. By transferring assets such as cash, securities, or real estate into a trust, you can enjoy steady income payments for life or a fixed term.


After the trust ends, the remaining assets are directed to an endowment or fund for Catholic ministries, schools, or parishes, creating a lasting legacy of faith and generosity. CRTs also offer unique opportunities, such as the "Give It Twice" plan and special needs trusts, to address diverse personal and charitable goals. A Charitable Remainder Trust is a legal arrangement that allows you to:


  • Transfer assets into a trust and avoid capital gains taxes and reduce estate taxes.
  • Receive income for yourself or beneficiaries for life or up to 20 years.
  • Direct the remainder to the Foundation or one of our affiliated funds or programs specified in the trust agreement.
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Benefits of a Charitable Remainder Trust

  • Lifetime Income — Receive income for yourself or your loved ones for life or a set term.
  • Tax Savings — Avoid capital gains taxes, enjoy an immediate charitable deduction, and reduce estate taxes.
  • Flexible Giving — Tailor the trust to meet your financial and philanthropic goals.
  • Legacy of Faith — Ensure long-term support for Catholic ministries, parishes, and schools.
  • Special Options — Utilize plans like "Give It Twice" or a Unitrust combined with a Special Needs Trust to address specific goals.

Types of Charitable Remainder Trusts

Charitable Remainder Unitrust (CRUT) — Offers variable annual income based on a fixed percentage of the trust’s fair market value, recalculated each year.


Charitable Remainder Annuity Trust (CRAT) — Provides fixed annual income based on the initial value of the trust, ensuring predictable payments.

How it Works

  • Create the Trust

    Work with your attorney or financial advisor to establish a CRT tailored to your goals.

  • Transfer Assets

    Fund the trust with cash, securities, or real estate.

  • Receive Income

    Charitable Remainder Unitrust (CRUT): Payments are recalculated annually based on the trust’s fair market value, providing variable income.


    Charitable Remainder Annuity Trust (CRAT): Payments are fixed and based on the trust’s initial value, ensuring predictable income.


  • Charitable Impact

    After the trust term ends, the remaining assets support Catholic ministries, schools, or parishes as specified in the trust agreement.

Example in Action

A retired couple funds a Charitable Remainder Trust with appreciated securities valued at $500,000.


By doing so, they avoid capital gains taxes, receive a charitable income tax deduction, and generate an annual income of 5% of the trust’s value.


Upon their passing, the remaining trust assets are distributed to the Catholic Legacy Foundation to benefit the Seminarian Endowment. 

Key Use Cases

  • The "Give It Twice" Plan

    The “Give It Twice” plan allows you to provide income for your heirs first, followed by support for Catholic ministries.


    How It Works:

    • Transfer assets, such as appreciated securities, into a CRT.
    • The trust pays annual income to your heirs for a set term, such as 15 years.
    • After the term ends, the remaining assets are distributed to Catholic ministries, such as seminarian education or parish outreach programs.

    Example:

    A donor funds a CRT with $500,000 in securities. The trust provides income to the donor’s children for 15 years, helping them with educational expenses and financial goals. Afterward, the remaining assets are added to an existing endowment for Catholic schools and an existing endowment for the donor’s church parish.

  • Unitrust and Special Needs Trust

    For families with loved ones who have special needs, a CRT can be combined with a Special Needs Trust to provide care while supporting Catholic ministries.


    How It Works:

    • Transfer assets into a Charitable Remainder Unitrust (CRUT).
    • The CRUT pays annual income to a Special Needs Trust for your loved one’s care.
    • After your loved one’s lifetime or the end of the trust term, the remainder supports the Catholic Legacy Foundation of Acadiana endowments that benefit Catholic ministries.

    Example:

    A donor funds a CRUT with $400,000 in appreciated real estate. The trust provides annual income to a Special Needs Trust, ensuring financial stability for their child. After the trust ends, the remainder is gifted to the Catholic Legacy Foundation for the benefit of The Diocesan Office of Marriage and Family Life Endowment.

Frequently Asked Questions

  • What types of assets can I use to fund the trust?

    You can fund a Charitable Remainder Trust (CRT) with cash, appreciated securities, real estate, or other qualifying assets.

  • Who can receive income from the trust?

    You can designate yourself, your spouse, or other beneficiaries, such as children or grandchildren, to receive income from the trust.

  • How is the income amount determined?

    Charitable Remainder Unitrust (CRUT): Income is based on a fixed percentage of the trust’s annual fair market value, recalculated each year, offering variable payments.


    Charitable Remainder Annuity Trust (CRAT): Income is a fixed amount based on the trust’s initial value, offering predictable payments.

  • How does the "Give It Twice" plan work?

    The trust first pays income to your heirs for a set term, then directs the remainder to one of the endowments held by the Catholic Legacy Foundation of Acadiana, creating a lasting legacy for your family and the Church.

  • What is the difference between a CRUT and a CRAT?

    A CRUT provides variable annual income based on the trust’s fair market value, recalculated each year.


    A CRAT offers fixed annual income based on the trust’s initial value, ensuring predictable payments.

  • Are there tax benefits?

    Yes, CRTs offer significant tax advantages, including avoiding capital gains taxes, receiving an immediate charitable deduction, and reducing estate taxes.

  • Are there minimum requirements to establish a CRT?

    Yes, the Catholic Legacy Foundation requires a minimum gift amount of $100,000 to establish a Charitable Remainder Trust or Charitable Lead Trust.

  • Are there fees associated with a CRT?

    The fee to handle a CRT is 0.5% based on the annual average quarterly balance.  It is deducted from the CRT at least annually. The CRT is also responsible to pay any additional admin expenses such as accounting fees for tax returns, legal fees, etc.

Start Your Legacy Today

Ready to make a charitable remainder trust gift?

To explore how a charitable remainder trust gift can align with Catholic values, contact us today.


Phone (337) 261-5642 | Email mtrahan@CLFAinc.org | Contact Us