How can I make a planned gift and provide safe, predictable future income?
How can I make a planned gift that allows for growth of future income?
Can someone besides a spouse share in the benefits of a life income gift?
How can a gift increase my current income from an asset?
Are there any planned gift vehicles that make sense for people under 65?
Can I make a gift that will provide income to someone else beginning at my death?

How can I make a planned gift and provide safe, predictable future income?

A charitable gift annuity or a charitable remainder annuity trust will pay you the same number of dollars which you and Davidson agree to at the time the gift is made -- each year for your life or for the term of the trust arrangement. Your income will not vary after you make the gift, even during dramatic fluctuations in the financial markets.

How can I make a planned gift that allows for growth of future income?

Unlike the gift annuities and annuity trusts referred to in the preceding question, income from a charitable remainder unitrust is calculated based on a fixed percentage of the trust’s value, and the trust assets are invested to generating capital gains and increased dividend income in the future. This means that your income is based on a total valuation which can increase, and the dollar value of your income can increase commensurately. The Personal Income Fund is also invested for a balance of current income and increased dividends over the long term.

Can someone besides a spouse share in the benefits of a life income gift?

Yes. Any life income plan can benefit a non-spouse, but in general, the lower the age of the youngest income beneficiary, the lower the income tax deduction available to the donor. Creating a life income plan for a non-spouse can also cause a portion of the amount donated to be treated as a taxable gift.

How can a gift increase my current income from an asset?

When Davidson (or a tax exempt entity like a charitable remainder trust) receives a planned gift, the donated asset can be sold without paying capital gains tax on the sale, then reinvested to produce future income and capital gains. This exemption often enables Davidson or the trust to pay a much higher percentage of the asset’s value in income than it was producing for before.

Are there any planned gift vehicles that make sense for people under 65?

Yes. Bequests are appropriate for people of any age. Deferred payment gift annuities can be attractive well in advance of retirement. The tax benefits of outright gifts of appreciated property are independent of your age. In certain circumstances, even charitable remainder trusts can be structured to make them tax-smart for younger people.

Can I make a gift that will provide income to someone else beginning at my death?

Yes, through a testamentary charitable remainder trust. This is done by including the trust language in your will. The value of the charitable deduction to your estate will depend on the relationship of the income beneficiary to you, and the duration of the trust.