Charitable Gift Annuities

[street]

Anyone familiar with them or have gifted in this way to your charity list? Not an annuity fan but then again it is for charity, you can receive payments back or gift the amount back again.

 

[OldShooter]

Anyone familiar with them or have gifted in this way to your charity list? Not an annuity fan but then again it is for charity, you can receive payments back or gift the amount back again.

I don't know that term but there is a fairly common trust called a charitable remainder trust. IIRC the grantor receives the income and at the grantor's death the charity receives the balance. This is territory for specialist CPAs and attorneys.

 

[OldShooter]

A little more research says a "charitable remainder annuity trust or CRAT" is a type of charitable remainder trust: https://www.investopedia.com/terms/c/charitableremaindertrust.asp To repeat, this is not DIY territory.

 

[gcgang]

Anyone familiar with them or have gifted in this way to your charity list? Not an annuity fan but then again it is for charity, you can receive payments back or gift the amount back again.

I've used several times.

Most charities have software and people on staff who can run the numbers and explain how it works for you.

I made gifts of highly appreciated securities. Depending on how you structure (income you receive and when you receive it) you receive an immediate tax deduction and an income stream. The longer you wait to get the income the larger your deduction.

It's especially useful if your security is going to be cashed out/taken over.

Our state (Montana) even had an additional tax credit for such gifts to in state endowments.

Sometimes the numbers can actually make giving a better financial situation for the donor than selling, paying tax, and reinvesting.

 

[street]

Thanks for your input and knowledge on gifting as an annuity. I beleive I will do one of them and it sounds like a nice way to give. You are correct there is a state tax credit for this type of gifting.

Thanks