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Do you want to leave a lasting legacy without risking reliable retirement income?

by Robert Heuermann, Executive Director

It’s not too soon to start thinking about your 2020 income taxes, or how charitable contributions may save you money next year and into the future.

One of the main ways we tend to give is directly from our savings or investments, but that may not be the best for you if you need income for retirement. You can have it both ways. A charitable gift annuity will let you make a charitable contribution to your cause, but still allow you to use the value of your assets to provide an annual return.

A charitable gift annuity begins with an outright charitable gift of a specified amount, which is combined with a fixed income annuity contract. Payments to you from this annuity can begin immediately, or they can be deferred for a period determined by you and set forth in the charitable gift annuity contract. When the annuitants (you, or you and your spouse) die, the remaining value of the annuity is then transferred to the church, school, or charities you’ve selected.

Here are eight quick points for you to consider when determining if a charitable gift annuity is right for you:

1. Your gift is given with the intention of a portion of it being returned to you as annuity payments over the years. A portion of the gifted assets’ value is still tax-deductible to you.

2. The assets you contribute are entirely removed from your estate. If avoiding estate tax is a primary concern to you, charitable gift annuities can be very helpful.

3. The annuity crediting rate is based on your age at issue. Generally, the older you are when you create a Charitable Gift Annuity, the higher the annuity rate paid to you.

4. The contributed assets are given irrevocably. They become a part of the assets of Catholic United Financial Foundation, so you do not have to worry about the annuity payments to you or the future gift to your chosen charities.

5. You control who receives your gift when you die. A Catholic United Financial Foundation Charitable Gift Annuity allows you to choose which and how many charities ultimately receive your donations.

6. A charitable gift annuity is not issued for a fixed term of years; the payment period is measured by your life. The annuity can also be structured along the life expectancies of a husband and wife if you are the two joint annuitants.

7. Annuity payments continue for the lives of the annuitants no matter what the investment returns. The annuity is backed by the Foundation’s assets, not just by the property contributed, and the payments become a general obligation of the Foundation.

8. Your annuity payments and charitable gift are safe and secure. For Catholic United Financial Foundation, this means that your annual payments, and future contributions to the charities you choose, are backed by a company you know and trust, Catholic United Financial.

Finding a way to leave a legacy for your church, school or other charities is a noble goal that can bring lasting rewards to you and the institutions you care about. Knowing that you can make such an important gift while providing yourself with a reliable income is a powerful tool for planning your retirement or estate.

Contact your local Catholic United Financial Representative (find yours here) or ask the Foundation for more information about this dual-purpose device for powerful saving – and giving, too.

Leave a lasting legacy without risking reliable retirement income
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Robert Heuermann, Executive Director

Contact the Foundation

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Robert Heuermann
Executive Director

3499 Lexington Ave N
St. Paul, MN 55126

Office: 651-765-4135
Toll free: 877-275-7145
Fax: 651-765-4133

foundation@catholicunited.org

This information is not intended to be a substitute for specific individualized tax advice. The information provided is based on our understanding of the laws and regulations currently in effect. Consult your personal legal or tax advisor with questions about your specific situation.

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