Maximize Your Life Income

At the recent 29th Conference on Gift Annuities in New Orleans, the American Council on Gift Annuities (ACGA) announced new suggested maximum gift annuity rates to take effect July 1, 2010. The new rates reflect a small adjustment upward in most rates since the last set of suggested rates became effective in 2009. This is the first general increase in suggested rates by the ACGA since July of 1997.

Although some organizations don’t accept charitable gift annuities and some who do choose to set their own rates, the suggested increase is a good indication that the economy is healing. This is good news for everyone, especially donors who are considering making a life-income gift.

Basically, a life-income gift plan is an arrangement under which you make a gift of cash or property (stocks, bonds, etc.) and receive a stream of income for life.

There are several benefits from this type of gift arrangement:

  • A stream of income for life, to more than one beneficiary if you wish
  • A charitable income-tax deduction in the year you make the gift
  • A charitable estate-tax deduction for a portion of the gift
  • A gift that will benefit the University of Wisconsin Foundation in the future

Life-income gifts may be made in the form of trusts or gift annuities. Please contact us to learn more about the benefits you could receive by making a life-income gift.

A Reminder as to Who Should Consider Converting from a Regular IRA to a Roth IRA. A Person Who…

  • Can afford to pay the conversion tax and do so from sources other than the IRA. Otherwise, the whole purpose of the conversion is defeated.
  • Does not expect to be in a lower tax bracket in retirement.
  • Will probably not need to touch the Roth for living expenses until much later, if ever.
  • Is younger, although this could work well for an older person in good health.
  • Wishes to provide for beneficiary(ies) who will stretch benefits over life expectancy(ies).

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