October 7, 2019

Immediate Charitable Gift Annuity

A charitable gift annuity is a contract between you and the Texas A&M Foundation. In exchange for a gift of cash or securities, the Foundation agrees to make fixed payments for the lifetime(s) of one or two individuals. When the gift annuity terminates, the Foundation uses the remainder to benefit Texas A&M as you wish. Annuitants must be at least 50 years old when payments begin, and the minimum amount to create a gift annuity is $10,000. 

Advantages:

  • Immediate charitable income tax deduction. A portion of each payment may be tax-free for a period of time.
  • Reduces capital gains taxes on securities used to fund the gift.
  • One or two individuals receive fixed payments for life.
  • Payout rates are based on age. The older the beneficiary, the higher the rate.  

 

Deferred Charitable Gift Annuity

Individuals who do not need immediate payments can use a deferred charitable gift annuity. Much like an immediate gift annuity, a contract between you and the Foundation is created to make fixed payments for the lifetime(s) of one or two individuals. Payments are determined to begin at a future date most convenient to you. A longer delay between the creation of the annuity and the commencement of payments will result in a higher payment rate. 

 

ADVANTAGES:

  • Receive an immediate charitable income tax deduction.
  • Reduces capital gains taxes on appreciated securities or real estate used to fund the gift.
  • Receive payments from the trust based on a set payout rate.
  • Relief from the maintenance, tax and insurance obligations on real estate used to fund the trust. 
 

Charitable Remainder Unitrust

A charitable remainder unitrust allows individuals to turn an appreciated asset that generates little or no income into a productive asset without paying capital gains taxes on the sale. Through a charitable reminder unitrust, which can be funded with appreciated securities, real estate or cash, you can make payments to selected beneficiaries for their lifetimes or for a specified term of years. At the termination of the trust, the remaining assets are distributed into an endowment that benefits Texas A&M as you wish.

Advantages:

  • Receive an immediate charitable income tax deduction.
  • Reduces capital gains taxes on appreciated securities or real estate used to fund the gift.
  • Receive payments from the trust based on a set payout rate.
  • Relief from the maintenance, tax and insurance obligations on real estate used to fund the trust. 

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