Gifts offer options, flexibility
Even in uncertain times, there are simple things we can do to make our lives better, especially when it comes to our financial future. If you are tired of rolling over your CDs for minimal returns, or if the fluctuations of the stock market concern you, there are ways to create stability and predictability you may not have considered. The key is to know your choices and understand there are some options that remain appealing.
If you are tired of disappointing CD rates, one idea for you to consider is a charitable gift annuity. A gift annuity provides fixed payments to you for life – at attractive rates based upon your age. You can also choose to fund one that pays a fixed income to you and another person for life. Keep in mind these are not commercial annuities and offer benefits commercial products do not provide.
For example, in addition to the fixed gift annuity payments, you will receive an income tax deduction this year for part of the funding amount. If you fund it with an appreciated asset like stock, you can avoid paying capital gains tax on the sale of your asset. You also have the peace of mind knowing the remainder, after you are gone, will fund an endowment to benefit the United Methodist church or ministry of your choice.
If you want a little more control you might consider a charitable remainder trust. This special trust provides income to you for life and a charitable tax deduction. You can decide whether to receive fixed payments or payments that vary with the performance of trust assets. Like a gift annuity, there are income tax benefits and the satisfaction of knowing you will fund a permanent endowment for ministry.
The charitable gift annuity and charitable remainder trust are wonderful tools to help you plan your future. The fixed payments of the gift annuity and the investment options of the remainder trust are just the beginning.
Both become even more attractive when you think about the income and capital gains benefits as well as the satisfaction of knowing your gift will impact lives in ministry.
Contact David Battles at the Foundation, 800-259-6863, for a personalized illustration of a charitable gift annuity or a charitable remainder trust to show you the benefits specific to your needs and goals.