Annuities and Trusts
For Givers Over 60
A number of charitable gifts pay income for life to one or two people of your choosing—the beneficiaries. In the case of Charitable Gift Annuities and Charitable Remainder Annuity Trusts, those receiving income must be at least 60 years old.
If you choose two beneficiaries to earn income (perhaps you and your spouse), after the death of the first, the second continues to earn the same amount of income as both had earned together. At the death of the second beneficiary, what remains in your gift fund is transferred to The Stony Brook School to help us carry on our important work.
- More about Charitable Gift Annuities and Charitable Remainder Annuity Trusts
You will earn a charitable income tax deduction in the year you create your annuity, and favorable treatment of capital gains if you fund your gift annuity with appreciated securities. Plus, in most cases, part of the income to your beneficiaries is tax free. The rate of income is based on your beneficiaries' ages. The most common gift annuity is for a husband and wife, but you choose any person or two people who are at least 60 years old. The minimum gift annuity is $15,000. Charitable Gift Annuities and Charitable Remainder Annuity Trust offer most of the same advantages, but many find Charitable Gift Annuities are much simpler to understand and execute.
For Givers Younger Than 60
If the beneficiaries you have in mind are not yet 60 years old, Deferred Gift Annuities enable you to hold off receiving income until the beneficiaries both reach that age. You might consider a Deferred Gift Annuity for yourself because you'd like to have a fixed income supplement around that age—or later.
- More about Deferred Gift Annuities
The income you receive from a Deferred Gift Annuity will be higher than an immediate annuity, and you will earn a larger charitable income tax deduction. The advantages of a Charitable Gift Annuity apply to a Deferred Gift Annuity as well--including a significant gift to The Stony Brook School.
To Provide Income for Your Heirs
Using a Charitable Lead Trust, you can make a considerable gift to the The Stony Brook School for many years and then transfer assets to heirs. You can reduce your estate tax and the generation skipping transfer tax (applied when you make large gifts to grandchildren, for example).
- More about Charitable Lead Trusts
This type of trust pays income to SBS for a set number of years (or for someone's life) and when the income to the School stops, the trust assets are transferred to your heirs. The tax consequences vary depending on who receives the remainder after the income to the School has ended.
If you or your professional advisors have questions about giving to SBS using annuities or trusts, please contact Kathy Sides, Director of Development, at 631-941-1551 or via email.