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A Trust That Pays You a Fixed Income Now, Rest to Us Later

With the current state of the economy, you may have started considering ways to cushion your income stream. Have you considered a charitable remainder annuity trust—a charitable solution with personal financial benefits?

An annuity trust is a great vehicle to provide you with income while allowing you to incorporate a gift to support our efforts.


What You Can Do With an Annuity Trust
  • Give cash or marketable securities to the trust.
  • Decide a fixed amount to be paid to you (and/or a loved one you choose) each year from the trust.
  • Receive a sizable income tax charitable deduction in the year you establish the trust when you itemize on your tax returns.
  • Support our critical needs with the assets that remain in the trust after your lifetime.

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 goebels@genesishealth.com. We would be happy to help you and work with your professional advisors if necessary.




Copyright © The Stelter Company, All rights reserved.

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.




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