|
Home
About us
Charitable Annuities
»Benefits
»Rate Tables
»Application Form
»Security
»Disclosure
Appreciated Securities
RRSP/RRIF
Endowment
Bequests
Sponsor Charities
|
|
Benefits of a Charitable Gift Annuity:
|
|
Guaranteed income.
Once the rate is set, it is set for life. These payments
can not be outlived. There is no risk and no worry.
The annuity requires no management.
You do not have to watch investments, interest rates,
maturity dates and so forth. You do not have to watch the stock market, the
economy, the income tax act, etc. Your payments are sent to you
automatically and regularly.
According to CRA (formerly Revenue Canada) interpretation
bulletins, all or a large part of your gift annuity income is tax
exempt.
Especially for middle and higher income persons, the yearly
tax savings are very significant.
For some older persons, there is a one-time charitable
receipt available when all the income is exempt.
When high rates of 9% or 10% are not necessary for you,
and you choose a somewhat lower rate, your charitable receipt goes up. We will
be happy to do the calculations for you. Just ask; no obligation.
At the end of your life, when you no longer require payments,
the remainder of the gift annuity capital becomes a gift for your
favourite charities.
The gift annuity is more efficient than a bequest because
it is not part of your estate. There are no probate fees (or taxes), no executor
fees, no legal fees, and no delays. All of this can save 8%-10% in estate
settlement costs.
There are many types of gift annuities.
Single life pays income for the duration of the life of a
specific
person. Joint annuities are for two named persons and continues payments
at the same level, to the surviving person for life, after the death of
the other. Some people, concerned for brothers or sisters in the same age
bracket, might consider acquiring a gift annuity on their life for their
income benefit. As an alternative to naming them for a bequest in your
will, if you can afford it, your sibling could have extra income now,
your estate would save on taxes and other estate fees and the final capital
amount would still go to the charity(ies) of your choice.
Gift annuities are very interesting and can be
integrated as part of a complete and comprehensive estate plan. Be sure
to ask us for some advice.
In some situations, we can arrange other ways to give
that are more
tax effective. So without obligation, please inquire. You will probably
learn a thing or two and may be able to pass some of this new and creative
information on to others. They will appreciate it and thank you.
|
|
|
