Category Archives: Planned Giving Advice

Helping WMCHealth and Helping You with a Charitable Gift Annuity II

What Is a Gift Annuity?

A charitable gift annuity is an excellent way to support WMCHealth and receive lifetime income for you and/or loved ones. It is a contract between you and WMCHealth Foundation. After you transfer cash, marketable securities, or other assets, WMCHealth agrees to pay a guaranteed fixed income each year to one or two individuals for their lifetime. Once the annuitants have passed, any remaining funds will go to support a hospital and/or program of your choice.

Benefits of a Gift Annuity

There are many benefits for a gift annuity for you and loved ones.

The guaranteed payments are fixed and paid for the rest of the lives of you and/or others whom you name as the annuitant(s).

You receive a generous income tax deduction in the year your gift annuity is created.

The annuity is backed by WMCHealth Foundation’s entire assets, not just by the property contributed.

A portion of each payment is considered a tax-free return of the gift during the life expectancy of the annuitant(s). After that, the payments are considered entirely taxable income.

If you donate a capital gain asset such as stock to fund the annuity, a portion of your capital gain is ratably spread and paid over your life expectancy, if you are an annuitant.

The income from a gift annuity may begin immediately or may be deferred until a future year. Deferred annuities are often planned for children or grandchildren, and they leverage much higher rates of payment.

The residual of your gift annuity completely escapes probate and estate tax.

Most importantly, the residual of your gift annuity remains a legacy gift for WMCHealth and may be designated to support one or more WMCHealth programs and services.

Gift Annuities Attractive During High Inflation.

Since payments from a gift annuity are fixed and backed by the entire assets of WMCHealth, they offer security during uncertain economic times, including during a high inflationary period. The gift annuity payments do not rise or fall with stock market values.

Contact Us! 

We are eager to answer your questions and offer personalized illustrations to you of the potential income and tax benefits with no obligation. Please contact Susan Gerry at 914-493-6304 or Susan.Gerry@wmchealth.org for more information.

Please consider a charitable gift annuity as an outstanding way to help you and loved ones, and for leaving a legacy supporting the important mission of WMCHealth!

New Opportunities for Gift Annuities.

As of January 1, 2023, two recent developments offer increased benefits for gift annuities.

First, the payout rates for gift annuites have increased. Please contact Susan Gerry at 914-493-6304 or Susan.Gerry@wmchealth.org to explore your charitable gift annuity rate(s).

Second, a new law permits tax-free rollovers for those age 70.5 years and older from his or her IRA to fund a charitable gift annuity. This rollover is available for one year only, at your choice, and for a maximum of $50,000. The gift annuity created by this IRA rollover (also known as a Qualified Charitable Distribution or QCD) can only make payments to the IRA owner and/or his/her spouse. The QCD for a gift annuity will also count towards your annual required minimum distribution (RMD). While the QCD for a gift annuity does not permit an income tax charitable deduction, there will be no income tax owed on the rollover to fund the annuity.

Helping WMCHealth and Helping You with a Charitable Gift Annuity

What is a Gift Annuity?

A charitable gift annuity is an excellent way to support WMCHealth and receive lifetime income for you and/or loved ones. It is a contract between you and WMCHealth Foundation. After you transfer cash, marketable securities, or other assets, WMCHealth agrees to pay a guaranteed fixed income each year to one or two individuals for their lifetime. Once the annuitants have passed, any remaining funds will go to support a hospital and/or program of your choice.

Benefits of a Gift Annuity

There are many benefits for a gift annuity for you and loved ones.

  • The guaranteed payments are fixed and paid for the rest of the lives of you and/or others whom you name as the annuitant(s).
  • You receive a generous income tax deduction in the year your gift annuity is created.
  • The annuity is backed by WMCHealth Foundation’s entire assets, not just by the property contributed.
  • A portion of each payment is considered a tax-free return of the gift during the life expectancy of the annuitant(s). After that, the payments are considered entirely taxable income.
  • If you donate a capital gain asset such as stock to fund the annuity, a portion of your capital gain is ratably spread and paid over your life expectancy, if you are an annuitant.
  • The income from a gift annuity may begin immediately or may be deferred until a future year. Deferred annuities are often planned for children or grandchildren, and they leverage much higher rates of payment.
  • The residual of your gift annuity completely escapes probate and estate tax.
  • Most importantly, the residual of your gift annuity remains a legacy gift for WMCHealth and may be designated to support one or more WMCHealth programs and services.

Gift Annuities Attractive During High Inflation.

Since payments from a gift annuity are fixed and backed by the entire assets of WMCHealth, they offer security during uncertain economic times, including during a high inflationary period. The gift annuity payments do not rise or fall with stock market values.

New Opportunities for Gift Annuities.

As of January 1, 2023, two recent developments offer increased benefits for gift annuities.

First, the payout rates for gift annuites have increased. Please contact Susan Gerry at 914-493-6304 or Susan.Gerry@wmchealth.org to explore your charitable gift annuity rate(s).

Second, a new law permits tax-free rollovers for those age 70.5 years and older from his or her IRA to fund a charitable gift annuity. This rollover is available for one year only, at your choice, and for a maximum of $50,000. The gift annuity created by this IRA rollover (also known as a Qualified Charitable Distribution or QCD) can only make payments to the IRA owner and/or his/her spouse. The QCD for a gift annuity will also count towards your annual required minimum distribution (RMD). While the QCD for a gift annuity does not permit an income tax charitable deduction, there will be no income tax owed on the rollover to fund the annuity.

Contact Us!

We are eager to answer your questions and offer personalized illustrations to you of the potential income and tax benefits with no obligation. Please contact Susan Gerry at 914-493-6304 or Susan.Gerry@wmchealth.org for more information.

Please consider a charitable gift annuity as an outstanding way to help you and loved ones, and for leaving a legacy supporting the important mission of WMCHealth!