Life Income Gifts
Gifts That Generate Life Income
Life-income gifts can provide financial security for you, family or friends now, along with reduced income taxes and possible estate tax benefits—while also providing future support to The Santa Fe Opera. One very attractive advantage of this type of gift is that highly appreciated but low income-producing assets may be placed in the trust. The trust, in turn, can sell the appreciated asset without paying capital gains tax and then reinvest the proceeds, improving your cash flow.
A Charitable Gift Annuity offers significant benefits both to you and to The Santa Fe Opera. If you make a contribution to the Opera of $25,000 or more in the form of a Charitable Gift Annuity, you can benefit from an immediate partial tax deduction, a guaranteed income for life with a fixed rate of return (for you, or one or two other individuals you name), and a reduction of your taxable estate. Our Planned Giving staff will gladly provide you with a calculation of specific benefits based upon your age, proposed gift amount and projected gift date. A simple contract details the agreement between you and the Opera, including the amount of the annuity and the payment schedule. [calculate immediate payments]
If you wish, you may establish a deferred gift annuity, with payments starting at least one year after your gift. The longer you wait to begin receiving payments, the higher the annuity rate. Deferred gift annuities are often an attractive way to supplement future retirement earnings, for example. [calculate deferred payments]
Some corporate matching gift programs will match the tax-deductible portion of a Charitable Gift Annuity. If your company has matched your gifts in the past, and you are considering a Charitable Gift Annuity, you may wish to ask whether a matching gift is possible.
A Charitable Remainder Trust is considered an excellent option if you are over the age of 55, would like to make a substantial gift, wish to retain income for life or the life of a designated beneficiary, and can place assets valued at $100,000 or more in the trust. Cash, securities, real estate or a combination of assets might be used to fund the trust. The Opera may serve as trustee of your trust, or you may retain trusteeship and choose your own investment methods.
The "charitable remainder" portion of the trust—that which ultimately is gifted to the Opera—must be at least 10% of the initial fair market value of the assets irrevocably transferred to the trust. Based upon IRS guidelines, you receive an immediate income-tax deduction for the value of the Opera's remainder interest.
There are two types of Charitable Remainder Trusts, the Unitrust [calculate variable payments] and the Annuity Trust [calculate fixed payments]. Some donors also establish an Asset Replacement Trust in conjunction with a Charitable Remainder Trust. A charitable trust can also be established within your will to provide income for an individual of your choosing.
We encourage you to discuss the possibilities of these powerful estate-planning tools with a trusted financial advisor, to discover just how life-income gifts can serve you, your loved ones, and the charitable causes close to your heart. Our knowledgeable staff can gladly provide more information as well.
Please call Robert Meya, Director of External Affairs, at (505)986-5912 or Contact Us by email.
Read a story behind these kinds of Gifts: Charitable Remainder Annuity Trusts or Charitable Remainder Trusts
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