Example: This year, Earl, 76, gives $100,000 in cash to an annuity trust. He chooses a lifetime income of $5,000 each year for himself and his 75-year-old wife, if she survives him. Earl is entitled to a charitable deduction of $45,095 (assuming annual payments and a 3.4 percent charitable midterm federal rate). He takes this deduction on his federal income tax return this year, up to 50 percent of his adjusted gross income, carrying over any excess up to five years. At the termination of the trust, Earl's trustee will distribute the balance to a Genesis Foundation.
To learn more about charitable remainder annuity trusts, contact Steve Goebel, CFRE at 309-281-4392 or email@example.com. We would be happy to help you and work with your professional advisors if necessary.
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The information on this website is not intended as legal or tax advice. For legal or tax advice, please consult an attorney. Figures cited in examples are for hypothetical purposes only and are subject to change. References to estate and income taxes apply to federal taxes only. State income/estate taxes or state law may impact your results.