GIFT ANNUITIES

A gift annuity is a planned gift, in which a donor gives cash or stock to Brightest Horizons and receives a fixed life income in return based on the age he or she is at the time of the gift and whether or not the income is to cover one or more lives. (The interest rates associated with the income increase with age, so this is one time that longevity pays off nicely.) Our donor or donors also receive a nice capital gains tax treatment, in which capital gains tax is paid out over a donor's life expectancy rather than all at once, and a federal tax deduction equal to the remainder interest left to Brightest. (The remainder interest is simply what is calculated at the time of the gift that will be left to us at the end of the annuity, based on mortality tables and the payout rate to the donor.) This is a particularly nice gift for people who are reaching later years as the interest rates are very attractive for those in their 70's, and 80's. Do call me at 239-481-2100 if you would like to see an illustration of such a gift for you.

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   Last modified: June 27, 2007