Certain charitable clients may wish to structure a charitable gift so that they retain a lifetime income stream. Keep in mind that a charitable gift annuity (CGA) can be an attractive option for these clients. Plus, if the client is 70 ½ or older, the client can take advantage of the one-time Legacy IRA opportunity to give $53,000 to a qualified charity such as an Unrestricted or Field of Interest fund at the Sacramento Region Community Foundation.
A CGA, like any other annuity, is a contract. Your client agrees to make an irrevocable transfer of cash or assets to the Foundation. In return, the Foundation agrees to pay the client (or a designated beneficiary such as a spouse) a fixed payment for life. Your client is eligible for an immediate income tax deduction for the present value of the future amount passing to charity.
Our team can help you stay up-to-date on the latest CGA rate changes (including the rates that took effect at the beginning of this year) and draft up an illustration for any client over age 65. We’ll work with you to evaluate whether and when a CGA is a good planning move for your client.