Higher Gift Annuity Rates

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For the first time in more than two decades, recommended gift annuity rates have gone up. Charitable gift annuities offer you several advantages, especially if you may not otherwise be able to itemize deductions under the new tax law.

Gift annuities offer secure fixed payments for life for one or two annuitants, in exchange for gifts of cash or appreciated assets. UCBF accepts gifts of cash, stocks, or bonds to establish gift annuities. The exact amount of the annuity payout depends on the age or ages of the annuitants. The new recommended one-life gift annuity rates start at 4.7% for donors age 60 up to 9.5% for those who are age 90 or older; while the new recommended two-life rates are slightly lower than the new one-life rates. 

You also benefit from the charitable deduction, which may enable you to itemize your income tax charitable deduction. Many gift annuity donors have already paid off their mortgages, leaving them with itemized deductions for only state and local taxes (maximum $10,000) and charitable gifts. The new standard deduction for a taxpayer age 65 or older is $13,600 (single filers) or $26,600 (joint filers). Establishing a charitable gift annuity may allow you to exceed the standard deduction while also boosting your spendable income. 

These annuity rates increases, along with an improvement in the charitable deduction due to increases in the IRS discount rate, make gift annuities a more attractive gift vehicle for friends of Berkeley who wish to support this great university while receiving fixed payments for life. Contact our office at 800.200.0575 to learn more.