Deferred Gift Annuity: The Details
You can make a gift and receive guaranteed fixed payments for life.
Deferred payments are higher than an immediate payment annuity as well as many securities and CDs. They are ideal to supplement other retirement income.
Is this gift right for you?
A deferred gift annuity is for you if ...
- You are in high earnings years, looking for both income tax savings now and an additional source of revenue when you retire.
- You want to make a significant gift to us and receive payments in return.
- You want to maximize the payments you receive from your planned gift — and you want to lower your income tax on those payments.
- You want the security of payments that won't fluctuate during your lifetime.
- You also appreciate the safety of your payments being a general financial obligation of William & Mary.
This version of the charitable gift annuity is especially designed for younger donors. Called the deferred gift annuity, it makes fixed annual payments to you and/or another beneficiary for life, with payments commencing at a future date. Because of the deferral of income:
- William & Mary can offer a higher income rate for these annuities than for annuities whose income starts immediately, and
- You may receive a larger charitable income tax deduction than you could get from any other life-income gift plan.
These two features make the deferred gift annuity quite attractive to donors in high-earnings years who are concerned about securing both current tax deductions and additional sources of retirement income.
Use a deferred gift annuity to help plan for retirement
Many donors establish a series of deferred annuities over several years, using funds they had already set aside for retirement saving. They set the commencement date for payments from these annuities to coincide with their or their spouse's retirement.
The deferred gift annuity offers the same benefits of simplicity, security, and attractive income deductions that the regular gift annuity provides our donors:
- Your deferred annuity is a contract between William & Mary and you, and your annuity payments are an obligation backed by our corporate assets;
- You secure a charitable income tax deduction based on the market value of the assets you contributed, minus the present value of the life-income interest you retained;
- No up-front capital gains tax is payable if you fund your deferred gift annuity with appreciated securities; only a portion of your gain is recognized, with the tax spread over your annuity payments.
- Part of each annuity payment to you comes tax-free as the return of principal;
- The balance remaining in your deferred annuity after the death of the beneficiaries will be used by William & Mary for the purpose you designated when you created the gift annuity.
- A deferred gift annuity at William & Mary can be made with a gift of $25,000 or more.
Please contact us so that we can assist you through every step of the process.