Which Life Income Plan Works Best for You?

You may wonder which income-generating gift plan– a charitable gift annuity, a charitable remainder annuity trust, or a charitable remainder unitrust – is right for you. Each gift addresses particular financial goals and you should choose the one that is the best fit for you.

Like the annuity trust, the gift annuity pays you fixed income. Because a gift annuity is a simple agreement and not an individually managed trust, you can often receive a higher payout rate than you would receive from an annuity trust. In addition, a gift annuity's income payments come to you partially tax-free, and partially as capital-gains income if you contributed appreciated assets. Unless your annuity trust is invested in tax-free securities, your income will most likely be taxable.

The annuity trust also offers management flexibility, multiple beneficiaries and existence for a term of years rather than the beneficiaries' lifetimes.

The unitrust is even more flexible. Its benefits are similar to those of an annuity trust; however its payout structure allows for income growth over time. We can show you how a unitrust paying 5% income will eventually outperform an annuity trust paying 6 or 7%.

The following chart compares the income and tax benefits from these three gifts:

Husband and Wife, 70 and 68 Asset contributed: $100,000 cash
	Charitable Gift Annuity	Annuity Trust	Unitrust
Income rate	5.3%	5%	5%
First year income	$5,800(fixed)	(fixed)	$5,000(variable)
Tax-free income	$3,503	(variable)	(variable)
Ordinary income	$1,797	(variable)	(variable)
Charitable deduction*	$25,068	$29,426	$39,696

*These examples are based on a factor that changes monthly. Contact our office for a personal illustration based on the latest rates.

For more information:

Email us, complete the personal illustration form, or call us at 800-775-6776 so that we can assist you through every step of the process.