Flexible Deferred Gift Annuity
What is a Flexible Deferred Gift Annuity?
A flexible deferred gift annuity is a simple contract between you
and Wooster.
In exchange for your irrevocable gift of cash or securities,
Wooster agrees to pay one or two annuitants a fixed sum each
year for life, with payments starting at least one year after
your gift. The annuitants may elect to start receiving payments
on any one of a range of dates. These dates and their corresponding
payment amounts must be listed in your agreement. The older
you are at the time of the gift and the longer you elect
to defer payments, the greater the fixed amount of income
Wooster can agree to pay. In most cases, part of each payment
is tax-free, increasing each payment's after-tax value.
Gift Range: $10,000 and More
» Please Send Calculation
for Flexible Deferred-Life Annuity
Example
Lester Hauschild wants the assurance of income in the future,
but he does not want to name a specific date now. He can
purchase a flexible deferred gift annuity; this means later
on he can select a specific date to begin income payments.
The contract with the College must state a range of years
during which the payments can begin.
- Mr. Hauschild is 60 years old and gives the College
$10,000 in exchange for a flexible deferred gift annuity. He requests
a range of 10 years during which time the payments can begin.
- If he elects to receive income five years out,
he will receive $790 a year.
- If he elects to receive income nine years out,
he will receive $1,020 a year.
Regardless of the effective start
date, he will get a charitable tax deduction at the time
he makes the gift.
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