The Annuity Trust: A Gift Opportunity That Helps Secure Your Future

Are you uncomfortable letting your future retirement dollars ride the ups and downs of the stock and bond market? Do you consider short-term money market rates too unstable and less than appealing?

You can choose a secure vehicle for your money and incorporate a gift supporting our efforts through an annuity trust.

With this plan, you will receive a fixed dollar income for life, which is an excellent way to supplement retirement income for yourself and your spouse or another beneficiary. Later, the remaining principal will be distributed to your favorite charitable organizations, supporting our critical needs.

At the outset, you decide the amount to be paid to you each year from the trust, knowing this income will remain certain and unchanged. Then you irrevocably transfer money or other assets or both to establish your annuity trust.

Assuming you itemize your deductions on your federal income tax return, you can take a sizable income tax charitable deduction in the year that you establish your trust.

Example: This year, Earl, age 69, transfers $100,000 in cash to an annuity trust. He chooses a lifetime income of $6,000 annually, payable quarterly, for himself and his 68-year-old wife, if she survives him. Earl is entitled to a charitable contribution deduction of $25,204 (assuming quarterly payments and a 4.6 percent charitable midterm federal rate). He takes this deduction on his federal income tax return this year, up to 50 percent of his adjusted gross income, carrying over any excess up to five years.

At the termination of the trust, Earl's trustee will distribute the remainder to your favorite charitable organizations.

The information on this site is not intended as legal, tax or investment advice. For such advice, please consult an attorney, tax professional or investment professional.

Copyright © The Stelter Company, All Right Reserved.

Essentials

Ways to Give

What to Give

Reading Room

Glossary of Terms

Q&A

Goals & Gifts

Bequest Language