One type of gift plan actually gives income back to you.  You are able to make a significant gift to Loyola Academy during your lifetime yet use those very assets to provide income to yourself and your beneficiaries and in many cases generate a larger income than the assets used for the gift are presently earning for you.

Tax and Other Advantages of Income-Producing Gifts

You may receive significant tax advantages, such as an immediate charitable income tax deduction, an avoidance of immediate capital gains taxes upon sale of appreciated assets, and eventual estate tax savings.

Gift with a Variable Income

A Charitable Remainder Unitrust is one in which the income from the trust varies with the value of the assets held in the trust.  As the value of the unitrust grows, the income paid to you or others you select increases proportionately.  However, if the value of the assets declines, the amount of income will decrease also.

Gift with a Fixed Income

A Charitable Remainder Annuity Trust is very much like the unitrust, except that with the annuity trust you receive a fixed income each year.  The dollar amount of the income is set as a percentage of the amount originally placed in the trust.  The advantage of this plan is that your annual income is fixed for the term of the trust and does not vary with the value of the assets held in trust.  No additions may be made to annuity trusts.

Creating an Income-Producing Gift

You can make such a gift to Loyola Academy by irrevocably transferring securities, cash, or other property to Loyola Academy (or other qualified party) as the trustee.  The trustee then manages the investment and pays an income to you, your spouse, and/or other beneficiaries.  The income payments continue for the beneficiary’s life, or for a period of years.

Thereafter, the remaining trust principal goes to Loyola Academy to support a program that you may choose.