Oct. 27, 2016 | CHH Foundation, Legacy Planning, News, St. Mary's Foundation
by Bradley Burck

Gift Annuities

Mountain Health Foundations include Cabell and St. Marys

One of the most common forms of life-income arrangements, gift annuities offer many advantages. They start with attractive payouts. The interest rates, generally ranging from 5 to 9 percent, are well above current market levels—a plus for those in their 70s or older. That makes these instruments a wise option for anyone experiencing a low return on CDs, money market accounts, U.S. Treasury notes, or bond funds.

Creating a gift annuity through our foundation allows you to obtain a higher level of income while ultimately providing the hospital with financial help. Determined by a person’s age, payout rates remain fixed for the life of the donor. In addition, the giver earns a generous income tax deduction—anywhere from 20 to 50 percent of the amount—during the year the annuity is created. Finally, depending on how the annuity is funded, the donor can enjoy a significant portion of the income tax free.

There are many forms of gift annuities and various options. Some have an immediate payout; others enable the giver to establish the agreement to obtain a current tax deduction while postponing the start of payments to a future date. Proceeds remaining from the annuity at your death become an outright gift to the Cabell Huntington Hospital Foundation and will be used for Forever Friends.

Annuity Benefits:

  • Simplicity
  • Low cost
  • Guaranteed fixed income for your lifetime
  • Payments guaranteed by the Cabell Huntington Hospital Foundation
  • Income tax deduction
  • Partially tax-free income
  • Bypass capital gains taxes on sales of appreciated assets
  • Potential estate tax savings

Current Gift Annuity Rate Chart:

Gift Annuity 2018 Chart

If you are interested in learning more about gift annuities, contact Bradley Burck at 304-526-2658. We can prepare a confidential, personally-designed illustration that will include information on your payout rate, the size of your tax deduction, and what portion of your payments would be tax-free.