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Joyce
and Burton had been married for forty-seven years. Not long before he died, Burton
looked into converting some of their certificates of deposit into a charitable
gift annuity. He and Joyce met with their advisors and found out it was a wonderful
idea. Joyce: We met with our tax advisor and looked at the idea.
When I saw the income we would have for the rest of both of our lives and compared
to what we were receiving from our CD's, I was amazed! Plus there were tax benefits
that helped us immediately. And now, I don't have to do a thing - it's all taken
care of. The
development officer explained how they could use our support and what it meant
to them. It was something Burton and I did together, and I'm happy; really happy
we did it when we could do it together!" A charitable
gift annuity can provide tax benefits now and a life-time income for the donor
and a beneficiary if desired. Perhaps also it brought peace of mind to Burton
knowing that Joyce would have the resources she needed if he was no longer there. A
deferred gift annuity is a variation on a gift annuity. A gift is made and
the charitable organization promises in return to pay you an income stream that
begins on a future date you specify. Since the payments do not begin for a period
of time, the fund will grow without withdrawls until the payments begin.  With
more money in the fund once payments begin, the payments will be larger than with
an immediate annuity. An attractive benefit of this arrangement is that
it enables a donor to make a gift now and take a charitable income tax deduction
now while in a high tax bracket. Income may be deferred, for instance, until after
retirement, when the rate of tax will presumably be lower. Deferred gift annuities
are creative ways to delay income to pay for children's or grandchildren's college
expenses, supplement your retirement income, or assist with assisted-care living
arrangements that may be inevitable. A part of each payment, as in any
gift annuity, may be tax-free for a period of years. However, the precise amount
of each payment will depend on the tax rules in effect when the payments start.
Charitable gift annuities are the gifts that keep on giving. Rates on charitable
gift annuities are based on age and whether the contract is immediate or deferred.
If you would like an illustration of this life income to address your particular
situation, please click here and fill out the response
form and send us the appropriate information. To look at some specific rates on
current gift annuities, click
here. Now click here to meet Susan and
Fred.
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