A Charitable Gift that Returns Income to YOU for Life
A tax-preferred way to provide a guaranteed lifetime income at an attractive rate of return with no investment risk while at the same time providing a gift to charity.
You will receive your fixed annuity income as long as you live. You can also set up a two-life annuity for you and your spouse, which will continue as long as either one of you live.
You will receive an income tax deduction when you set up your plan, plus your annuity income will be partly tax-free.
CAP is an excellent way to assure that your income will not run out. Unlike living off of your savings, you can receive guaranteed income for the rest of your life...no matter how long you live.
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Can you imagine a Guaranteed
Life Income that is Tax-Preferred
and an immediate Gift to Charity?
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The benefits of using a CAP are:
- Guaranteed Lifetime Income
- Tax-Preferred Income
- An Immediate Gift to Charity
- Tax Deduction
- No Investment risk
Guaranteed Life Income
You make a single deposit. The amount of your income benefit is based on your age. The older you are, the higher the rate of return. For example, at age 65, the income you receive is currently 5.3%; at age 75 it is 6.3%; and at age 85 it is 8.1%. These figures are based on the current tables of the American Council of Gift Annuities and are subject to change. Multiplying the rate by the amount of your deposit equals the annual income you receive - a portion of which is tax-free.
Tax-Preferred Income
Income payments received from CAP are partially tax-free. The percentage varies for each age. You will be advised of your tax benefits before you make your deposit.
A Gift to Charity
The Charitable Annuity Tables also calculate the amount of your deposit that qualifies as a gift. Therefore, in addition to all the other benefits that accrue to you and and your family, you also get to be a valued donor to your favorite charity, with perhaps the largest gift you have ever given.
Tax Deduction
In addition to the tax benefits of Tax-Preferred income, a CAP also gives you an income tax deduction for the gift portion of your deposit. You will be advised of your tax deduction before you make your deposit.
No Investment Risk
Investment decisions have become much more difficult. Many people's situations call for a return they can count on. With CAP, you can set up a lifetime income with no investment risk. Your income remains the same and will not fluctuate. It cannot be lowered, canceled, delayed or suspended, regardless of interest rates, the stock market or the economy.
Additional Benefits
Other advantages that can be received with CAP include designating someone in addition to yourself, or instead of yourself, to receive the income. Another benefit of CAP is that the funds will not be a part of your estate and there will be no probate costs or estate taxes on those monies.
Source of Funds
Some sources of funds which could be used to deposit into CAP are CDs, IRAs, personal savings, proceeds from life insurance, an inheritance, cash value of existing life insurnace, or any other source.
Who Should Consider the Plan?
Retirees, beneficiaries of life insurance, persons in need of a fixed income for a dependent parent or child...anyone who wants a guaranteed income for life and would also like to provide an immediate benefit to their favorite charity.
Let's look at an Example:
For a deposit of $25,000:
