If giving to charity is important to you, a Deferred Charitable Gift Annuity should be considered.
You want to leave a legacy.
You want to help others.
So you have decided to include charitable giving in your estate planning.
According to a recent Lee’s Summit Journal article, titled “Retirement planning power tool,” a Deferred Charitable Gift Annuity could be a help with these goals.
Essentially, it is a contract between you and the charity you choose.
What is are typical parameters?
The non-profit agrees to pay a pre-determined amount to a couple or individual each year for as long as they live.
What does the non-profit receive?
They receive a contribution and future remaining amount following the death of the donating individual or couple.
What specifically is a Deferred Charitable Gift Annuity (DCGA)?
With this model, the contribution is made now ... while the annuity payment is delayed until later.
What are the benefits?
You can save on your annual taxes.
You can get a charitable deduction.
You can increase your retirement income.
You can reduce your estate potentially subject to estate taxes.
You can leave a significant gift to a charity of your choosing (instead of the IRS).
Are you curious about whether this would be useful for your circumstances?
Work with an experienced estate planning attorney and financial advisor.
They will be able to guide you through the complexities of a Deferred Charitable Gift Annuity.
Remember: “An ounce of prevention is worth a pound of cure.” When making your financial, tax and estate plans, do not go it alone. Be sure to engage competent professional counsel.
For more information about estate planning in Overland Park, KS (and throughout the rest of Kansas and Missouri), visit our estate planning website and be sure to subscribe to our complimentary estate planning e-newsletter while you are there.
Reference: Lee’s Summit Journal (March 28, 2017) “Retirement planning power tool”