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CHARITABLE
GIFT ANNUITIES
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 man 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.
Please contact us for
an illustration of how your gift can produce income
for life.
Now
click here to meet Susan
and Fred.
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