Charitable Gift Annuity

Have a lot of cash sitting around? Perhaps some real estate? Or do you want to be alive when your heirs find out they are not getting any inheritance (just to see the look on their faces)? If so, a charitable gift annuity may be right for you.

You give a large charitable gift to your favorite cause. They keep the big chunk of cash (or the asset you donated) and return some of the money to you while you're still alive in the form of an annuity. You will receive a tax deduction, as well as the payments back to you by the charitable organization. You have basically given what you once had to your favorite charity and this charity will send you payments while they are waiting for you to kick the bucket.

The big variable is time. The quicker you die, the more they get to keep. The payments that you receive back come as an annuity...a series of substantially equal payments over a period of time.

Why would someone do this? One reason is that you get a tax break. Another reason is you get to appreciate the gift of giving while you are still alive knowing that upon our death, the charity will stop the payments and keep the remaining assets previously given. Perhaps more likely, you are a control freak and want to take of this while you are living to see that it is done right!