Has anyone ever done one of these? I'm considering making a significant (for me) donation to my alma mater and I figure I could do it either of two ways:
- Through a straight Charitable Remainder Trust wherein I would give them a chunk of money and could receive the earnings from that chunk for as long as I live and then they would keep the chunk.
- Do a 1035 transfer from an existing Vanguard Variable Annuity to a Charitable Gift Annuity and, at some point, begin taking annuity payments from it. When I die the college, rather than an insurance company, gets to keep the principal.
The main thing that concerns me is that the college probably uses some sort of financial intermediary who will rip off some percentage of my donation every year. (I know I can ask the college who handles the money, but I haven't yet.)
Of course, one way to avoid that would be to simply leave the chunk in my will and just leave them an outright cash gift.
If anyone has had any experiences along these lines I would appreciate your insights.
- Through a straight Charitable Remainder Trust wherein I would give them a chunk of money and could receive the earnings from that chunk for as long as I live and then they would keep the chunk.
- Do a 1035 transfer from an existing Vanguard Variable Annuity to a Charitable Gift Annuity and, at some point, begin taking annuity payments from it. When I die the college, rather than an insurance company, gets to keep the principal.
The main thing that concerns me is that the college probably uses some sort of financial intermediary who will rip off some percentage of my donation every year. (I know I can ask the college who handles the money, but I haven't yet.)
Of course, one way to avoid that would be to simply leave the chunk in my will and just leave them an outright cash gift.
If anyone has had any experiences along these lines I would appreciate your insights.