Comments on: What are Charitable Gift Annuities and how do they work?

By: Economy and your Finances Carnival 22nd Nov 2009

Economy and your Finances Carnival 22nd Nov 2009 — Thu, 27 May 2010 01:15:27 +0000

[...] presents How does a Charitable Gift Annuity work? posted at Christian Personal Finance, saying, “What is a Charitable Gift Annuity and how does [...]

By: This Week’s Roundup » JoeTaxpayer

This Week’s Roundup » JoeTaxpayer — Sun, 22 Nov 2009 13:04:51 +0000

[...] Clark posted at Christian PF, What are Charitable Gift Annuities and how do they work? It turn out they offer a way to get a tax deduction, immediately, then get a steady income while [...]

By: Edward Hankins

Edward Hankins — Thu, 19 Nov 2009 18:54:27 +0000

Darren
That is a great thought. I have seen that Charitable Remainder Trusts (CRT) are an efficient and useful tool for gifting and in estate planning. With especially good planning, the CRT can buy an insurance policy for the donor whereby the beneficiaries of the estate can replace the value of the gift through a non-taxable life insurance policy. Caveat – Consult a tax and legal professional before taking on this transaction.
Charitable gifting to your Christian organization is what God wants us to do with the gifts that He has provided to us.

Edward Hankins
Christian Financial Brotherhood
http://www.thecfb.org
(503) 828-1387

By: Darren

Darren — Mon, 16 Nov 2009 23:42:38 +0000

Nice post. Just to add, if the asset is placed in a trust(called a Charitable Remainder Trust), the contributed property will be removed from the donor’s estate. This can be helpful for individuals with an estate that is over the estate tax exemption amount.

Furthermore, the trust doesn’t pay any income tax. Highly appreciated assets can be contributed to a charitable remainder trust, and the trustee can sell the assets and reinvest the proceeds without a taxable capital gain. However, the main drawback to using this type of trust is that it is irrevocable.