hree types of life income gifts are available. Each type will generate income tax charitable contribution deductions equal to a portion of the gift and will not generate capital gain taxes at the time of transfer if funded with appreciated property.
If
you are planning for retirement or currently wish to maximize spendable
income, appreciate the value of deferring capital gains taxes, desire
the security and predictability of a fixed income, and would like to
benefit the Yale Peabody Museum, then a charitable gift annuity may be
right for you.
A charitable gift annuity is an
arrangement whereby you contribute cash or marketable securities in
exchange for Yale University’s promise to pay you and, if you wish
another annuitant, a guaranteed income for life at a rate based on the
age(s) of the annuitant(s).
If you prefer to delay receiving income for some period of time, you
may make a deferred payment charitable gift annuity contribution.
Making a present transfer of assets while deferring the start of income
payments will enable you to increase your income tax deduction or to
increase the amount of the annuity payments.
The University asks that you give a minimum of $10,000 in order to
establish a charitable gift annuity for the Yale Peabody Museum.
If
you seek the protection of a diversified investment portfolio,
appreciate the opportunity to select a suitable combination of
investment yield and growth, and want to provide future financial
stability for the Yale Peabody Museum, then you may wish to consider a
pooled income fund gift. A pooled income gift is particularly
appropriate if you anticipate making additional life income gifts.
A pooled income fund combines and invests your gift of cash or
marketable securities (excluding tax-exempt bonds) with the gifts of
others and pays your proportionate share of the fund’s yield each year
to you for life, or to persons whom you designate for their lifetimes.
Yale University maintains three pooled income funds: a growth fund, a
balanced fund, and a stable fund.
The University asks that you make a minimum initial contribution of
$10,000 to a pooled income fund. Subsequent contributions may be as low
as $1,000.
A
charitable remainder trust would allow you to retain income or to
provide an income for someone else, provide individualized management
of your gift, and may increase your capacity to make a gift to the Yale
Peabody Museum.
A charitable remainder trust is a
separately invested irrevocable trust you create by designating a
person or persons to receive income payments of at least 5% annually
and transferring cash, marketable securities, closely held stock or
real property to a trustee you select. At the conclusion of the income
payments, the trustee pays the trust principal to the Yale Peabody
Museum.
A charitable remainder trust involves administrative and some start-up
costs. Therefore, you probably should not consider such a gift
arrangement for amounts less than $100,000.
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