Major Gifts
Gift Annuities
The older you are, the better a gift annuity looks. Annuities offer a fixed, guaranteed income for life that is not subject to market fluctuations. The amount of income is computed according to percentages based on the donor's age: the higher the age, the higher the income. (Rates for men and women are the same.)
Gift annuities can be purchased with cash, securities or real estate. The Able Trust retains these funds in sufficient amounts to guarantee payments. In addition, the donor receives an immediate charitable deduction, the size of which is established by the U.S. Treasury.
Up to half of each payment is tax-free according to IRS rulings. This means that donors in lower tax brackets often earn a higher after-tax income from gift annuities that have a higher yielding, but fully taxable investments.
Payments can be diverted to any beneficiary during the donor's life. Some donors use annuities as a creative method of funding a loved one's education.
Contact The Able Trust's planned giving office to discuss your options by clicking here.