Wilkes University

Life Income Gifts

Life Income Gifts - Wilkes Pays You for the Rest of Your Life 
 
A CHARITABLE GIFT ANNUITY, or GCA, is a simple contract between you and Wilkes University that pays you a fixed dollar amount (annuity) for your lifetime and that of another individual, if desired, based on your age(s) at the time of the gift. The older you are the higher the annuity. If you use appreciated property, such as stocks, to fund the gift annuity, you will escape the capital gains on the gift portion of the transaction and the remaining gain will be apportioned over your lifetime. This is a good way to increase income from stocks that pay small dividends and carry heavy capital gains.
 
A CHARITABLE REMAINDER ANNUITY TRUST, or CRAT, is a trust that will pay the donor (and one or more other named beneficiaries, if desired) a specified annuity income for life or a period of time not to exceed 20 years. The amount of the annuity is a fixed amount chosen by the donor at the time the trust is established and is paid at least annually. The annuity paid cannot be less than 5 percent of the initial fair market value of the trust.
 
A CHARITABLE REMAINDER UNITRUST, or CRUT, has many of the same attributes as a CRAT, but with more flexibility and planning opportunities. The primary difference is that the payout is a fixed percentage (not less than 5 percent) of the market value of the trust assets as determined annually. While the percentage cannot be changed, the amount paid out may increase (or decrease) over time. Additional contributions can be made to a CRUT over time, and there are several income variations that can be used with creative planning possibilities, such as to save for retirement or to educate grandchildren in college.

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