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Does anyone have any experience with a charitable gift annuity?
I will have a nice chunk of change from my old-fashioned pension plan when I retire (I hope in January). If I take the annuity from my job, and get hit by a bus after one check, my estate gets nothing- they get to keep it all.
In addition, I currently have listed a big animal sanctuary as my beneficiary for the whole pension (before I retire) and in exchange, they will transport and keep any dogs I've listed with them for life.
I am debating putting a lot of my pension into a charitable gift annuity with this sanctuary (Best Friends in Utah) and bundling in the lifetime care of any dogs I have when I die. I will be talking to my accountant about the tax implications (advantages) of this kind of annuity versus, say, an IRA, plus there would be no RMD.
I have read that some charitable annuities are insured in case of the charity's failure. Is that like the federal insurance on deposits at banks?
I am just starting to look into this, primarily because I want to continue to have the coverage for my pets in place. Any info that someone would like to share about charitable gift annuities is appreciated.
These sophisticated charitable giving techniques produce best tax results when you give appreciated assets to fund the annuity. Otherwise, with the type of income you mention, direct charitable contributions seem the way to go.
I would think you will get the larger monthly payment by taking the pension option. Remember in 30 or 40 years inflation will
significantly reduce your monthly payments.
Remember you will get paid if you live to 110. You get paid with the money left over from those who died after a few payments.
I think I would look toward a life insurance policy for the charity or leave money in your will for the purpose.
I would think you will get the larger monthly payment by taking the pension option. Remember in 30 or 40 years inflation will
significantly reduce your monthly payments.
Remember you will get paid if you live to 110. You get paid with the money left over from those who died after a few payments.
I think I would look toward a life insurance policy for the charity or leave money in your will for the purpose.
I think you are probably right. I am waiting for info from the charity regarding what I think will say that there is no income tax on the monthly payouts which could make it about even. I am all for simplification and it would be simpler to get my monthly payout from one source (a big old fat rich source).
I haven't thought about life insurance. I am up for the cheapest greenest funeral there is. Is there any other reason for a single person with no human dependents to have LI?
You might consider donating your body to a medical school
I think in cases like that there is cremation after completion
And while you have dogs now it is possible that as time passes you might not
Difficult to plan for the unknown
Get attorney with experience
You might consider donating your body to a medical school
I think in cases like that there is cremation after completion
And while you have dogs now it is possible that as time passes you might not
Difficult to plan for the unknown
Get attorney with experience
Where I am moving is five hours drive to a medical school.I certainly have though of that.
If I don't have dogs in later age, I have nothing to worry about except a standard will to charities and an executor/lawyer.
I think you are probably right. I am waiting for info from the charity regarding what I think will say that there is no income tax on the monthly payouts which could make it about even. I am all for simplification and it would be simpler to get my monthly payout from one source (a big old fat rich source).
I haven't thought about life insurance. I am up for the cheapest greenest funeral there is. Is there any other reason for a single person with no human dependents to have LI?
When you establish a charitable gift annuity, you initially receive a tax deduction for part of your contribution. There are IRS formulas that the charity will use considering your age, expected returns, etc. to determine the percentage that will be allowed as a deduction. Depending on your income and the size of the deduction, you may or may not be able to use the entire deduction in one year.
As you receive payments from the annuity, part of the payments will be taxable, again determined by IRS formulas.
If the annuity is insured, it is insured by an insurance company not the government. So the value of that insurance will be depend on the financial health of the insurance company.
There's plenty of info available online from the charities and organizations of charities about these annuities.
Edit added:
if you take a lump sum distribution of your pension benefit, it will be all taxable. Mandatory withholding may be required. So, you need to look at the effect that will have on your taxes including any deduction for charitable contributions made with the funds. If you roll the pension over into an IRA, that is not a taxable event. You could set up an IRA, make the charity the beneficiary and decide later what to do.
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