CHARITABLE GIFT ANNUITY

Read the WARNING! first.

An annuity is an agreement to make periodic payments, other than life insurance, where the making or continuance of all or of some of a series of such payments, or the amount of any such payment, is dependent upon the continuance of human life. An annuity is a contract between an annuity (or life insurance) company and the annuitant (person on whose life the annuity is based).

A charitable gift annuity is a contract between you, the annuity company and a beneficiary. You transfer to the beneficiary cash, securities or in some cases, real estate and the beneficiary purchases and annuity contract from and annuity company. The annuity contract guarantees you and one other beneficiary a fixed income for life, a portion of which is tax free. The guaranteed income payments are based upon the ages of the beneficiaries, so the older the income recipients, the higher the rate of return. You will also be entitled to a substantial charitable income tax deduction in the year you make the gift. Some of the advantages of a charitable gift annuity are:

• Increase in income stream

• Charitable tax deduction when making gift

• Partial tax exemption on income

• Capital gains reported over annuitant’s lifetime

• Payments to donor or other person

• Possible federal estate tax savings

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For assistance with a Charitable Gift Annuity, contact us.