If you are considering a major gift, a “life income” gift may be an excellent year-end gift. Such a gift can increase your own income!
You could transfer cash or stock to us and establish a “charitable remainder unitrust” or “charitable remainder annuity trust” that would provide you with a 5% or greater annual return. This income would be paid to you and/or a loved one for life, after which the assets would be distributed to us. Through such an arrangement, you would be increasing your income and making a meaningful (and tax-deductible) contribution to us at the same time.
Example: Suppose Mrs. Barnes, age 75, purchased some stock many years ago for $10,000 and that the stock is now worth $100,000. But, she receives only $2,000 per year in dividends, or a 2% yield. By transferring the stock to a charitable remainder trust and specifying that she wanted a 6% return for life, she could:
- Triple her annual income (from $2,000 to $6,000);
- Avoid the capital gains taxes that would otherwise be incurred on a sale of the stock; and
- Be entitled to a charitable contribution deduction of approximately $55,000.
(The amount of the deduction depends upon the age of the donor, the rate of return specified in the trust,the size of the gift, and other factors.)
Please give New Life a call 1-800-639-5433 for details.
* based on tax year 2008
