Immediate Income, Enduring Gift
Back in 1965 I bought a very nice four-bedroom house with all the perks of the day in Coronado, California. When I sold it in 2000 for a considerable profit, I couldn't help but lament how much of that profit would be lost to taxes.
My lawyer had a better idea. He recommended I put the proceeds in an independently managed charitable remainder unitrust—which allowed me to invest without losing part of my investment to capital-gain tax, plus I received an immediate charitable tax deduction. During my lifetime I enjoy quarterly payments based on the trust's overall value. After I pass away the remainder will be divided equally between the Naval Academy Foundation (I earned my degree from the Naval Academy in 1956) and the Tri-Delta Sorority Foundation, an organization close to my late wife's heart.
The trust has been a great way to continue to redeem the value of that property over the years, and I heartily recommend that other folks consider this method of securing additional income from their investments while providing for the long-term support of organizations that are important to them—especially the Naval Academy Foundation!
—Captain J. William Flight '56, USN (Ret.)
Information contained herein was accurate at the time of posting. The information on this website is not intended as legal or tax advice. For such advice, please consult an attorney or tax advisor. Figures cited in any examples are for illustrative purposes only. References to tax rates include federal taxes only and are subject to change. State law may further impact your individual results. California residents: Annuities are subject to regulation by the State of California. Payments under such agreements, however, are not protected or otherwise guaranteed by any government agency or the California Life and Health Insurance Guarantee Association. Oklahoma residents: A charitable gift annuity is not regulated by the Oklahoma Insurance Department and is not protected by a guaranty association affiliated with the Oklahoma Insurance Department. South Dakota residents: Charitable gift annuities are not regulated by and are not under the jurisdiction of the South Dakota Division of Insurance.