Charitable Gift Annuity
The donor gives a gift of cash or assets to a charity in exchange for lifelong income for the donor or other beneficiaries. Upon the beneficiary’s death, the charity receives the remainder of the assets. The donor benefits from an income tax deduction, prorated capital gains taxes on some gifts, and reduced estate tax liability.
Charitable Lead Trust
A donor’s assets are placed in trust and income is paid to a charity for a set term. At the end of the trust, the remainder of the assets are returned to the donor or the donor’s heirs. Gift, estate, and generation-skipping tax advantages may all be donor benefits.
Charitable Remainder Trust
The donor or other designated beneficiaries receive a fixed income or a percentage of the value of the trust’s assets either for a set time period or for life. When the trust ends, one or more charities chosen by the donor receive the remaining assets. Income tax deductions, deferred capital gains and reduced estate tax liability are all advantages of a charitable remainder trust.
DEFERRED OR IMMEDIATE: All annuities have the same objective: to provide retirement income. The income an annuity provides depends on: • The contract value, which is determined by the premium, or purchase price to buy the annuity, plus the earnings that accumulate, minus fees and other costs • The payout options you choose • Whether the annuity is fixed or variable • Your age when payments begin and the age of the joint annuitant if there is one With a deferred annuity you build your retirement savings over a number of years. You pay the premium with a lump sum, a series of payments, or a combination of these methods, depending on the terms of the contract. With an immediate annuity, you make a single lump-sum payment and income payments begin within 13 months. Annuities can play a vital role in charitable Income planning. This press release contains content from Light Bulb Press with permission.