Donor is guaranteed a fixed annual income for life at a rate that may be higher than prevailing CD interest rates
Donor may include a second beneficiary in the gift annuity agreement; if the beneficiary survives the donor, payments continue for the life of the beneficiary
Donation can be in cash or securities
Donor can select payment frequency: monthly, quarterly, semiannually or annually
For a period of years, a portion of the annual income the donor receives is considered a tax-free return of principal, exempt from federal taxes, thus increasing the donor's after-tax income
Donor qualifies for a charitable contribution tax deduction for a portion of the value of the assets donated. Percentage of deduction varies, based upon whether the gift was in cash or in long-term appreciated securities
If the gift is funded with appreciated securities, capital gains taxes for the donor are lessened and/or can be spread out over the term of the contract
If the donor's spouse is named as the beneficiary, payments made to the spouse are not subject to the unified federal estate and gift tax
Gift is made during the donor's lifetime; donor has the satisfaction of watching his/her gift at work in support of the SAG Foundation's goals
The SAG Foundation will have immediate use of a portion of the funds
A Charitable Gift Annuity is easy to create and can be established iwth a simple contract; a new will is not required and estate taxes and probate are avoided
Please contact Integrated Wealth Management for further details.
