The charitable gift annuity is one of the most common, popular and simple ways to make a planned gift that provides beneficiary(ies) lifetime income in return. In exchange for an irrevocable gift of cash, marketable securities, or in some circumstances, real estate, one or two annuitants will be paid a fixed dollar amount each year for life. The fixed dollar amount is based on the age of the beneficiary(ies) at the time the gift is made (the older the beneficiary(ies) is, the greater the payout.) The annuity rate is usually based on recommended rates established periodically by the American Council on Gift Annuities.
A gift annuity may be established with a minimum gift of $1,000.
Features and Benefits
- Fixed payout offers a guaranteed income
- Attractive rate of return
- Can help diversify or increase yield on appreciated assets
- Immediate tax deduction
- Avoid capital gains taxes
- Estate tax and probate savings
- Membership in the Heritage Society
The information on this website is not intended as legal advice.
For advice and assistance in specific situations, the services of a professional advisor should be obtained.