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Life-Income Gifts

Life-income gifts provide you with a wonderful way to “do well while doing good!”

Charitable Gift Annuities

A charitable gift annuity (CGA) is a simple contract between you and the United Methodist Foundation. In exchange for your irrevocable gift of cash, securities, or other assets, the United Methodist Foundation agrees to pay one or two annuitants you name a fixed sum each year for life. The older your designated annuitants are at the time of the gift, the greater the fixed income the Foundation can agree to pay. In most cases, part of each payment is tax-free, increasing each payment’s after-tax value. Payments may be made annually, semiannually, or quarterly.

At the death of the last annuitant the remainder interest passes to a United Methodist church or agency, to be used for the purpose you designate, unless you have elected to create a permanent fund to provide income only to the charitable beneficiary.

  • Minimum Amount: $10,000
  • Payments: Fixed amount for life of annuitant
  • Addition of Principal: Not permitted — but additional annuities may be established
  • Beneficiary: May be multiple United Methodist entities.
  • Beneficiary Distribution: May be lump sum or only income.

Charitable Remainder Annuity trusts

A charitable remainder annuity trust (“annuity trust”) is a gift plan defined by federal tax law that allows you to provide income to yourself or others for life or a term of years while making a generous gift to a United Methodist church or agency of your choice.

As an annuity trust donor, you irrevocably transfer assets, usually cash or securities, to a trustee of your choice (for example, the United Methodist Foundation or a bank trust department). During the trust’s term, the trustee invests the trust’s assets. Each year, the trustee provides a fixed dollar amount to one or more income beneficiaries named by you. The payments must be at least 5% of the trust’s initial value and are made out of trust income, or trust principal if income is not adequate. Payments may be made annually, semiannually, or quarterly.

When the annuity trust term ends, the trust’s principal passes to a United Methodist church or agency, to be used for the purpose you designate.

  • Minimum Amount: $75,000
  • Payments: Fixed amount for life of annuitant limited to principal in the account
  • Addition of Principal: Not permitted — but additional annuities may be established
  • Beneficiary: May be multiple United Methodist entities.
  • Beneficiary Distribution: May be lump-sum or only income.

Charitable Remainder Unitrusts

A charitable remainder unitrust (“unitrust”) is a gift plan defined by federal tax law that allows you to provide income to yourself or others for life or a term of years while making a generous gift to a United Methodist church or agency of your choice.

As a unitrust donor, you irrevocably transfer assets, usually cash, securities, or real estate, to a trustee of your choice (for example, the United Methodist Foundation or a bank trust department). During the unitrust’s term, the trustee invests the unitrust’s assets. Each year, the trustee pays a fixed percentage of the unitrust’s value, as re-valued annually, to one or more income beneficiaries named by you. Payments must be at least 5% of the trust’s annual value and are made out of trust income, or trust principal if income is not adequate. Payments may be made annually, semiannually, or quarterly.

When the unitrust term ends, the unitrust’s principal passes to a United Methodist church or agency, to be used for the purpose you designate.

  • Minimum Amount: $75,000
  • Payments: Variable amount based on value of unitrust on annual valuation date and stated percentage of return to the annuitant Principal in the account
  • Addition of Principal: Permitted
  • Beneficiary: May be multiple United Methodist entities.
  • Beneficiary Distribution: May be lump-sum or only income.

Please note that the United Methodist Foundation of Western Pennsylvania does not attempt to provide donors with specific legal or tax advice. Donors are encouraged to seek the services of competent legal, tax, or financial planning professionals.

If there are other questions about life-income gifts you’d like us to address, please send us an email.

 
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