Deferred Charitable Gift Annuity
Deferred Charitable Gift Annuity
With a deferred gift annuity, a donor benefits in two ways: first, by receiving an immediate charitable income tax deduction (thus, decreasing income taxes during high income years) and second, by building retirement income on a tax-sheltered basis. Because the investment has time to grow while income payments are deferred, the donor ultimately receives higher income payments and simultaneously creates an even greater charitable gift.
Example:
Susan is single and 51 years old and actively saving for her retirement years. She is also very interested in doing something special to support Sagemont Church. in exchange for a deferred payment gift annuity that will begin paying her a fixed lifetime annuity at age 62. Under this arrangement, when Susan turns 62, she will receive annual annuity payments of $3,050, or 6.1% of her gift (of which $1,970 is tax-free). Susan also gets an immediate income tax deduction of $5,058, further increasing her total effective return for this investment. Susan will receive these payments as long as she lives, and afterwards, Sagemont Church will receive the remaining balance.
Click image to enlarge
For assistance creating a Deferred Gift Annuity (click here)
Wills & Trusts Teleconference | Overview of Estate Planning | How to Get Started
Information on this site is NOT intended for legal advice. See Disclaimer
