Steady Income for Life
Invest in Predictable Income and Support Unitarian Universalism
Since the New Year, the Dow Jones Industrial Average has fallen over 200 points on seven occasions and has closed below 12,000 points for the first time since November 3, 2006. Those who rely on dividends, interest from investments, or the sale of securities may have noticed this recent decline in the markets. And while the market is readjusting, those relying on income generated by it are experiencing a financial roller coaster ride potentially resulting in one less trip to the supermarket or to the pharmacy this month.
Fortunately, there are several ways for those 55 years or older to get off of this roller coaster while retaining steady income, claiming an immediate charitable tax deduction, and supporting Unitarian Universalism. Below are two common ways to do this.
Charitable Gift Annuities
The concept of a gift annuity is relatively simple. You, wishing to support the Association, a congregation, or other Unitarian Universalist entity, make a gift to the Association. The UUA then reinvests your assets and agrees to pay out fixed payments to you for your lifetime (and, if desired, for that of another beneficiary). Upon death of the last individual beneficiary, the annuity is terminated and the remaining funds are distributed to the charitable beneficiary (the Association, a congregation, or another Unitarian Universalist entity).
Charitable Remainder Annuity Trusts
Annuity Trusts are a popular option for gifts of over $100,000 and allow for greater flexibility than Charitable Gift Annuities. With this plan, the trust pays a fixed dollar amount every year for the rest of your life with no investment worries or responsibilities. After your lifetime, the trust remainder becomes available to the Association, a congregation, or other Unitarian Universalist entity of your choosing.
With Annuity Trusts you decide the amount to be paid to you each year from the trust. You may also select other individual beneficiaries, choose an event that triggers the start of annuity payments such as retirement or a birthday, and even set the number of years over which the trust will pay income before terminating.
The following brochures provide more in-depth information about these two types of gifts:
- Charitable Gift Annuity brochure (PDF, 4 pages)
- Charitable Remainder Annuity Trust brochure (PDF, 3 pages)
If you are interested in setting up an annuity, want to learn more about other types of planned gifts, or have any other questions, please contact the Legacy Gifts Office toll-free at (888) 792-5885 or via email at giftplans @ uua.org.
Last updated on Friday, April 18, 2008.
