Charitable Gift Annuity |
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This type of life income fund can be established with a gift of $5,000 or more. You and, if you wish, another beneficiary will then receive a lifetime annuity. The pay out rate is determined by the ages of beneficiaries and varies from 5.9% to 12%. See Gift Annuity Rates for current one life annuity rates.
All beneficiaries must be at least 50 years old when an annuity agreement is issued.
Advantages of a gift annuity
- You will receive income for life
- Part of your income will be tax free
- You will receive an immediate federal income tax deduction
- If you make your gift with appreciated securities, you will avoid immediate capital gains taxes
- If you make your gift with low-yielding securities, you may actually increase current income
- You may reduce your estate tax
- You will be enrolled in the Legacy Society.
Deferred Gift Annuity
You can gift an annuity now and defer payments to a later date, such as your retirement, when you may have a greater need for income. The rate will then be determined by the length of deferment and your age when payment begins and could range from 7% to 30%.
