Life Income Gifts


If you own stock that is fluctuating with the stock market and is paying you little in dividends, a “life-income” gift may be an appropriate year-end gift. You could transfer the stock to us and establish a “charitable gift annuity” that would provide you with a greater annual return—often between five and nine percent. This income would be paid to you and/or a loved one for life, after which the assets would be distributed outright to us. Through such an arrangement, you may be able to increase your income and make a meaningful (and tax-deductible) contribution to us at the same time.

Example: Suppose Mrs. Barnes, age 75, purchased some stock many years ago for $10,000 and that the stock is now worth $100,000. But, she receives only $2,000 per year in dividends, or a 2% yield. By transferring the stock to a charitable remainder trust and specifying that she wanted a 6% return for life, she could: triple her annual income (from $2,000 to $6,000); avoid the capital gains taxes that would otherwise be incurred on a sale of the stock; and be entitled to a charitable contribution deduction of approximately $55,000.

(The amount of the deduction depends upon the age of the donor, the rate of return specified in the trust, the size of the gift, and other factors.)

The Springfield Symphony urges you to discuss your tax planning with your accountant or other professional advisor. If you have any further questions please contact:

Elizabeth Hurst
Development Manager
This e-mail address is being protected from spambots. You need JavaScript enabled to view it

or call at 417-864-6683


More in this category: « Gifts of Real Estate

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