Deferred Gift Annuities

A Deferred Gift Annuity gives you flexibility. Payments to you or to your beneficiary can be started many years after your initial donation. Deferred Annuities help you plan for retirement or for special future needs such as assisting your family or missionaries with future education.

By establishing a Deferred Annuity, you accomplish:

• A larger current charitable deduction
• An increase in the payout rate that is guaranteed

Three Choices

Three types of Deferred Annuities provide maximum flexibility in your charitable planning: Deferred Annuity, Flexible Deferred Annuity, and College Annuity.

• Deferred Annuity––The future payment start date is fixed when the annuity agreement is signed.
  
  Example: A couple, ages 65 and 62, contribute $20,000. They considered these annuity choices and selected the 10-year Deferred Annuity:
• A Current (Immediate Payment) Annuity
• A Deferred Annuity, beginning income payments in five years
• A Deferred Annuity, beginning income payments in 10 years

	Immediate Payment Annuity	Income Deferred Five Years	Income Deferred 10 Years
Contribution	$20,000	$20,000	$20,000
Income Rate (Fixed)	5.60%	5.80%	6.20%
Annual Payment	$1,120	$1,160	$1,240
Charitable Deduction	$3,210	$6,835	$10,628



• Flexible Deferred Annuity––A deferred payment date is selected, while reserving the right to start payments in a range of dates, earlier or later. This flexibility can help if, for example, you have not yet decided when you will retire, or if the ministry needs extra time to sell property that you are gifting to fund the annuity.
  
  Example: A couple, ages 65 and 62, decide they want their deferred payments to begin when they turn 75 and 72. However, they also want the option of choosing an earlier start date (e.g., when they are 70 and 67) or a later start date (e.g., when they are 80 and 77).

	Ages 75 & 72	Ages 70 & 67	Ages 80 & 77
Contribution:	$20,000	$20,000	$20,000
Income Rate (Fixed):	10.0%	7.4%	13.9%
Annual Payment:	$2,000	$1,480	$2,780
Charitable Deduction:	$4,884	$3,203	$7,279



• College Annuity––The future payment start date is arranged to coincide with an identified term of school years, and the usual annuity lifetime payments are grouped and paid during this period of education. Grouped annuity payments can also be used in other ways––for example, to provide payments in years when special project funding is needed.
  
  Example: A donor establishes a college annuity for the nine-year old daughter of a missionary family they have been supporting for many years. Payments will begin when the girl turns 19.

Contribution:	$50,000
Income Rate (Fixed):	5.5%
Annual Payments:
2013	$17,119
2014	$17,119
2015	$17,119
2016	$17,119
Charitable Deduction:	$5,536

For further information and assistance, please contact Steve Hoffman of our Gift and Estate Design services.

Phone: 1-800-436-4488
Email: shoffman@gemission.com

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