What is a life income gift?

There are several different types of life income arrangements. Charitable Gift Annuities and Charitable Remainder Trusts are the most common ones used today.  With these, a donor relinquishes assets (cash, securities, real estate) to an organization such as Hospice of the Comforter.  The organization then sets up an agreement that pays the donor an income for a specified number or years or for life.
When the donor passes away, the balance of the life income agreement then flows to the organization. How much income a person receives depends on the age of the donor, the amount placed in the agreement, the number of years payments will be made, how many income recipients are involved and several other factors. In addition to a reliable stream of income, the donor is usually entitled to significant tax benefits such as a bypass or deferral of capital gains taxes, a charitable deduction that can be applied to income taxes in the year the instrument is established, and reduced or eliminated estate taxes.
If you would like to explore which charitable giving arrangement is best for you, please consider meeting our planned giving counselor to go over your options and receive an illustration prepared specifically for you. An informed decision can be made once you have all the facts and figures. Please call our planned giving counselor at 407-682-0808, ext. 305, or send an email to stevececchetti@hospiceofthecomforter.org to learn more.

Example:

Nellie Schultz was nearing her 78th birthday. Five years ago, Hospice of the Comforter had helped her care for her husband Ned during the final months of his life. She had always wanted to show her appreciation by making a significant gift, but wasn't sure how much money she would need in the years to come. 
Nellie made an appointment with our planned giving counselor so that he could show her a way to transfer an investment that wasn't paying her much into something called a Charitable Gift Annuity.  Now, instead of receiving almost no income from that money, she would be getting 7.6%, or $760, a year.
In addition, $488 of it was tax-free return of principal, so her effective rate of return was 10.5%. She is eligible for a charitable tax deduction as well. She will receive this money for as long as she lives, and then the balance of the annuity will transfer to Hospice of the Comforter in memory of Ned and Nellie Schultz.

A COPY OF THE OFFICIAL REGISTRATION AND FINANCIAL INFORMATION FOR ORGANIZATION #CH2236 IS AVAILABLE FROM THE DEPARTMENT OF CONSUMER SERVICES BY CALLING TOLL-FREE WITHIN THE STATE. 1-800-435-7352. REGISTRATION DOES NOT IMPLY ENDORSEMENT, APPROVAL, OR RECOMMENDATION BY THE STATE.

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