Flexible Deferred Gift Annuity
John and his spouse, Nicole, sold a lake cabin earlier this year and are looking for a way to offset the capital gains tax owed from the sale. John enjoys the challenge and responsibility of his job and is not quite ready to retire. But, he is looking at planning options for retirement.
Nicole: We needed a charitable deduction to avoid paying the taxes we owed from the sale of our cabin. While John invested his energies at work, I spent years volunteering for the Church (I still do) and wanted to find a way to make a special gift to start a permanent endowment in our family's name.
John: Nicole and I were both in good health, and I still enjoyed working. We were living comfortably on my current salary but were looking for ways to plan for retirement. I wasn't quite certain when I would retire, so we wanted to find an option that would let me be flexible with my retirement date.
Nicole: The Catholic Foundation of Eastern Montana told us that a Flexible Deferred Gift Annuity would help us meet our goals. Instead of selling our appreciated stock and paying high capital gains tax, we could donate the stock to them (for the benefit of the Church) and receive an immediate charitable tax deduction and Montana Endowment Tax Credit to offset our current tax bill. The Flexible Deferred Gift Annuity would let us select when to begin taking payments, that would continue for life — most likely when John was ready to retire.
John: We decided to set up the Flexible Deferred Gift Annuity. We received a charitable tax deduction the year that the gift was made (and the 40% Montana Endowment Tax Credit) and experienced immediate tax savings. When I am ready to retire, we will contact the Foundation to start the payments, giving me the flexibility to continue working as long as I would like. In addition, the Flexible Deferred Gift Annuity makes it possible for us to receive a sizable portion of each payment tax-free, which is nice!
John: Nicole and I were both in good health, and I still enjoyed working. We were living comfortably on my current salary but were looking for ways to plan for retirement. I wasn't quite certain when I would retire, so we wanted to find an option that would let me be flexible with my retirement date.
Nicole: The Catholic Foundation of Eastern Montana told us that a Flexible Deferred Gift Annuity would help us meet our goals. Instead of selling our appreciated stock and paying high capital gains tax, we could donate the stock to them (for the benefit of the Church) and receive an immediate charitable tax deduction and Montana Endowment Tax Credit to offset our current tax bill. The Flexible Deferred Gift Annuity would let us select when to begin taking payments, that would continue for life — most likely when John was ready to retire.
John: We decided to set up the Flexible Deferred Gift Annuity. We received a charitable tax deduction the year that the gift was made (and the 40% Montana Endowment Tax Credit) and experienced immediate tax savings. When I am ready to retire, we will contact the Foundation to start the payments, giving me the flexibility to continue working as long as I would like. In addition, the Flexible Deferred Gift Annuity makes it possible for us to receive a sizable portion of each payment tax-free, which is nice!
Is a flexible deferred gift annuity right for you?
If you are interested in a Charitable Gift Annuity but don't have a present need for the annuity payout, a Flexible Deferred Annuity could be the right gift for you. You decide when you want to begin receiving the annuity payout. The longer you defer the payments, the higher the payout.
Contact us if you would like to learn more about Flexible Deferred Annuities and how this gift could help you.
*Please note: The names and image above are representative of a typical donor and may or may not be an actual donor to our organization. Since your gift annuity benefits may be different, you may want to click here to view a color example of your benefits.
