 Contact Trust and Estate Officer Neela Silva at (213) 413-4130 to learn more. |
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Life income plans provide a steady source of income while also benefiting Los Angeles communities.
The foundation offers two primary types of life income plans:
Charitable Gift Annuity
The charitable gift annuity is a simple agreement between you and the foundation. In exchange for a gift of assets, typically cash or stock, we promise to pay you and your partner a guaranteed lifetime income.
Take advantage of the benefits of a charitable gift annuity with an initial gift of $10,000.
Start drawing the income immediately or defer the payments until a certain age.
The income the foundation pays is based on age and is especially favorable to older individuals.
You receive significant tax benefits, including an immediate charitable tax deduction, and a portion of each income payment is considered a tax-free return of principal. The remainder of the annuity is used to establish a fund at the foundation with a purpose specified by you.
This is a particularly useful tool if you wish to support charities that are not licensed to offer charitable gift annuities in California by the state Department of Insurance.
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Charitable Remainder Trust
A charitable remainder trust allows you to support the community while gaining an immediate income tax deduction, reducing estate taxes, potentially eliminating capital gains taxes, increasing income from assets and providing for your partner and other heirs.
This very flexible planned giving strategy is best suited for gifts of more than $100,000.
There are two principal types of charitable remainder trusts:
Fixed Life Income Trust
Also called an annuity trust, the fixed life income trust allows you to receive an income for life — based on an annual dollar amount predetermined by you — with the remainder going to a fund at the foundation in your name.
The income tax deduction can be taken immediately and carried forward for five subsequent years. Your estate taxes will also be reduced significantly.
Variable Life Income Trust
This life income plan is the right choice if you would like an annual payment during retirement but are concerned that inflation will diminish the value of a fixed income.
Also called a unitrust, the variable life income trust allows you to specify a percentage — the minimum is 5 percent — of the trust’s assets to be paid out each year for your or your partner’s lifetime, rather than a fixed dollar amount. As the assets grow, the income will grow as well.
For further details on how we set up and administer charitable trusts, contact Trust and Estate Officer Neela Silva at (213) 413-4130.
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