Accomplish Family Goals with a Gift

Send mom (or dad) a monthly check...build up your retirement nest egg...increase your income...decrease your taxes. What do these admirable activities have in common? They all can be accomplished with well-planned charitable gifts. Do any of the following case studies reflect your own situation?

  • Ted, age 65, sends his mother, 85, a check every month for $200 that comes out of interest from several certificates of deposit (currently taxable to Ted). After the CDs mature, Ted transfers about $42,000 for a charitable gift annuity and we agree to send his mother the same $200 monthly checks – and to continue the checks for Ted’s lifetime after her death. Ted receives a charitable deduction from this arrangement of nearly $17,000 and is relieved of taxes on the CDs.

  • Suzanne is a 47-year-old business owner who contributes the maximum every year to her 401(k) plan. She wants to save even more for retirement, but in a way that saves income taxes and possibly helps her alma mater. Suzanne decides to place $25,000 in a charitable gift annuity that will pay her $4,250 (17%) at age 67 – but allow her to start payments earlier or later, if she desires. She can deduct about $15,000 this year, and can repeat this gift/income plan in future years with similar tax and financial results.

  • Fred owns a number of rental properties, but now that he’s retired he would like to shed the headaches of being a landlord, while keeping a good income. After talking with our planned giving staff, he settles on a plan that will allow the properties to be sold (without capital gains taxes) and pay him a higher income than the rents provided. He sleeps better at night, and enjoys charitable deduction tax savings, as well as the satisfaction of assisting our programs.


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