Estate and Gift Planning Corner
Payments for Life: A Legacy Forever
Creating a charitable gift annuity is an easy way to receive payments for life, reduce taxes, and support UM, all at the same time.
A portion of your gift annuity payments are income-tax free. Because interest rates are near historic lows, the tax-free portion is particularly high. This advantage can be locked in for your lifetime if you act soon.
Funding a charitable gift annuity has powerful benefits:
- You can receive fixed payments for life.
- You can receive a charitable deduction on your income tax. If your gift will create an endowment, you may qualify for the Montana Endowment Tax Credit. The credit applies to 40 percent of the present value of your contribution, up $10,000/year for each taxpayer.
- If you use appreciated stock, no immediate capital gains are triggered by funding a charitable gift annuity.
- The remainder of your gift will support UM.
Mary and John, ages 74 and 76, want to create an endowment to provide scholarships. They fund a charitable gift annuity using $100,000 cash and choose joint lifetime payments. Their gift annuity rate is 5 percent, and they will receive $5,000 annually for life. Mary and John are
Montana state residents and also qualify for a $15,000 credit against their state income tax liability.
Gift annuities are available with the UM Foundation starting at the $10,000 level.
For more information about charitable gift annuities, please call David Gant, assistant vice president, gift planning, at 406.243.2593. David joined the UM Foundation this fall from the University of Oregon, where he helped hundreds of people plan their charitable contributions.
David and our gift planning team are here as a resource for you. We can provide you with a personalized gift illustration showing how a charitable gift annuity is a powerful way to support UM. Please also visit the Gift Planning section of our website at SupportUM.org/GiftPlanning.