What will my payments be?
Age has an advantage in charitable gift annuities. The older the payment recipient(s) are when the annuity is funded, the higher the rate. And the rate is stable for life regardless of stock market fluctuations.
In addition to a fixed return, you'll also enjoy other tax benefits including tax-free income, capital gains tax advantages and a charitable income tax deduction.
Below are current sample rates:
|Single Beneficiary||Two Beneficiaries|
|Age||Annuity Rate||Ages||Annuity Rate|
|70||5.1%||70 & 75||4.8%|
|75||5.8%||75 & 80||5.4%|
|80||6.8%||80 & 85||6.1%|
|85||7.8%||85 & 90||8.8%|
Will I receive a tax deduction for my gift and how are my payments taxed?
Yes, you will be eligible for an income tax deduction when you fund the gift annuity. A substantial portion of the payments will be tax-free for the life expectancy of the income recipient(s).
When will I receive my payments?
You can choose quarterly, semiannual or annual payments by check or direct deposit to your bank account.
Can I create a gift annuity to benefit someone else?
Yes. For example, an adult child might provide financial support for an older parent. The parent receives a rate based on their age and the adult child receives an income tax deduction based on the parent's age too.
You might also use a gift annuity to provide a retirement benefit to a valued employee. As in the example above, the donor receives a deduction based on the income recipient's age.
If I'm under 65, is there an annuity option for me?
Yes. A deferred gift annuity can delay payments to a future date. It gives you a larger tax deduction immediately and a higher rate of return when payments begin.
For some, a deferred gift annuity can combine charitable giving with retirement planning, particularly for those unable to make additional payments to retirement plans.
Below are examples of deferred charitable gift annuities:
|Current Age||Deferral||Annuity Rate|
What should I do next?
To receive a personalized illustration of your return, deductions and tax benefits, contact Lisa Locher, planned giving manager, at 888-773-9958 or Kay Koehler, director of estate planning, at 561-312-3573 or email us at email@example.com.