Lewis is a 54-year-old executive at a large health care company. He purchased company stock during years when the stock price was low, and now the stock has grown substantially.
Lewis and his wife, Ann, sold a vacation home earlier this year and are looking for a way to offset the capital gains tax owed on the sale. Lewis enjoys the challenge and responsibility of his job and is not quite ready to retire. But he is looking at planning options that will provide income in the future with the flexibility to retire when he is ready.
Ann: We needed a charitable deduction to offset the taxes we owed from the sale of our second home. While Lewis invested his energies at work, I spent years volunteering with a ministry I loved and wanted to find a way to make a special gift to help further its work this year.
Lewis: Ann and I are both in good health, and I still enjoy working. We are living comfortably on my current salary, but are looking for ways to plan for retirement in the future. I'm not quite certain when I will retire, so we want to find an income source that will permit me to be flexible with my retirement date.
Ann: A gift planner from the ministry told us a Flexible Deferred Charitable Gift Annuity would help us meet our goals. Instead of selling our appreciated stock and paying high capital gains tax, we could give it to them and receive an immediate charitable tax deduction to offset our current tax bill. The flexible deferred gift annuity would permit us to elect to begin taking payments for the rest of our lives when Lewis is ready to retire.
Lewis: We decided to set up the flexible deferred gift annuity and were able to achieve all of our goals. We received a charitable tax deduction in the year that the gift was made and experienced immediate tax savings. When I am ready to retire, we will contact the ministry to begin 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 large portion of our income tax-free, and this is an attractive benefit!
Please note: The story, names and image above represent an example of the benefits of this type of estate-planning tool. They do not represent actual donors to GFA.
You may want to click here to calculate your benefits based on your age and wishes, or contact us to request a personalized Flexible Deferred CGA illustration.
GFA's Charitable Gift Annuities are administered by National Christian Foundation and can be funded with cash or securities with a minimum value of $10,000. Income payments from a CGA can be received quarterly or annually.