- Charitable Gift Annuities
- Charitable Insured Annuities
- Charitable remainder trusts and gifts of future interest
A gift that pays you an income
You can make a significant gift to UBC while maintaining or even increasing your income from assets such as cash, securities or other investments.
With a charitable gift annuity, a portion of your contribution is used to purchase an annuity guaranteeing you a fixed monthly income for life while the remainder goes directly to your chosen purpose at UBC as a gift with immediate tax benefits.
The fixed monthly payments you receive are a combination of income earned by the investments and the capital of the original investment. Only the income portion is taxable. A gift annuity can be for one or two people, so your spouse or another loved one can also receive payments for life.
Benefits of a Charitable Gift Annuity include:
- You receive guaranteed, regular payments that are largely tax free, for life
- You enjoy a substantially higher cash flow than could be offered by fully taxable investments such as T-Bills, bonds, GICs, etc.
- You reduce taxes and increase after-tax income
The Charitable Insured Annuity is a flexible gift-planning instrument that combines annuities with life insurance. It appeals to people who wish to make a substantial future gift upon their passing and receive a guaranteed monthly income for life.
Here’s how a Charitable Insured Annuity works:
- With existing funds, you purchase an annuity that guarantees fixed monthly payments to you for your lifetime. The guaranteed monthly payments are a combination of income earned by the investments and the capital of the original investment. Only the income portion is taxable. The combination of an annuity with a life insurance contract provides a substantially higher cash flow than fully taxable investments such as T-Bills, bonds, GICs, etc.
- A portion of the fixed monthly annuity payment is used to fund premiums for an insurance policy owned by UBC that will ultimately benefit the University as you direct. An annual tax receipt is issued to you for the insurance premiums paid from the annuity proceeds.
- Upon your passing, UBC receives the face value of the life insurance policy, which it uses according to your wishes.
If you chose instead to create a charitable remainder trust, you would set money or other assets into a trust for UBC’s ultimate benefit. You could act as trustee personally or assign that responsibility to someone else. All income generated from the trust goes to you, or persons you choose, for a predetermined time or until the end of your life, at which time the residual goes to UBC to support the purpose you choose.
You immediately receive a tax receipt for the value of your gift, calculated based on your age and life expectancy. As the residual amount passes to the university outside of your estate, it is not subject to probate fees, ensuring more of your estate goes where you intend.
Gifts of real property, such as a residence, art collection or vacation home, can be managed in a similar fashion. You or a specified heir retain the use and enjoyment of the property until passing. Then, again, the property passes outside your estate, without attracting probate fees.
Please contact us and we would be happy to work with you to see if one of these options works to your advantage.