| Types of Planned Gifts: Life Income Agreements
More than 570 life-income agreements have been established
with the College. Presently over 46 million dollars is invested in life-income
agreements.
Deferred Gift Annuity
You can make a gift to Lafayette while you are still working, receive
an income tax deduction in the year the gift is made, and defer your annuity
payments until you retire. Payout rates for deferred annuities are determined
by the length of deferment and your age at the time payments begin. There
can be one or two beneficiaries.
Example
#1: Mr. Roberts is 55 years old. He transfers $10,000 to Lafayette
for a deferred payment gift annuity to begin at age 65. Beginning in
ten years he will receive $970 (9.7%) annually for life, of which $276
will be tax-free. He will receive a charitable deduction of $4,521*
in the year the gift is made.
Example
#2: Mr. Green is 55 years old and Mrs. Green is 50. They transfer
$20,000 to Lafayette for a deferred payment gift annuity and will receive
$2,340 (11.7%) annually for life, beginning in 15 years; $536 of that
amount is tax-free. They will receive a tax deduction of $7,700 in the
year the gift is made. The full guaranteed payments continue for the
life of the survivor.
* The charitable deduction is determined in part by the IRS Discount Rate,
which is published monthly.
Benefits of Establishing a Deferred Gift Annuity
- Make a substantial gift to Lafayette and support a program that is meaningful to you
- Increase your ultimate rate of return and augment
retirement income
- Receive a substantial charitable tax deduction in the year the gift is made
- Reduce capital gains tax on a gift of appreciated securities or appreciated property
- Receive federal estate tax savings
- Become a member of the Marquis Society
- Become a member of the James Madison Porter Society
|
