Gift Annuities are the Greatest!

"A gift annuity is the best way to give," Mike exclaimed. "You get great income plus a good tax deduction."

Mike and his wife, Marty wanted a gift annuity for their parish. Marty, who was getting ready for her 55th college reunion, wanted an annuity for her college. Upon doing some research, the two discovered that Marty's college is not licensed for annuities in California.

"Not a problem!" they learned. They could do a single gift annuity with the Diocese of California and designate half to the parish and the other half to the college.

"Because of the effect of the tax deduction," Mike, a former businessman, pointed out, "the after-tax income is really stunning. Besides, we funded the annuity with a gift of appreciated stock and were able to avoid tax on the capital gain."

Marty and Mike chose a two-life annuity. This way no matter which spouse dies first, the survivor's income will be unchanged.

"We also like that, while the stock market has plunged and interest rates are now in the basement, our income has remained exactly the same," said Mike. "And when we die," Marty added, "it goes to two very good causes. We could not be more pleased."