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The gift annuity is the
most popular planned gift after bequests. In exchange
for your gift of cash or marketable securities to
Covenant House New Jersey, we agree to pay you (and
a survivor or other beneficiary) a fixed amount annually
for your lifetime. The transfer is part gift and
part purchase of an annuity. The minimum donation
to establish a gift annuity is $5,000. You will receive
a tax deduction in the first year of your gift annuity,
the amount of which will vary based on your age.
In addition, a portion of the annual proceeds will
be tax-free to you for a number of years. Your rate
of return is attractive and the payments are guaranteed
for life.
The rates are different for an annuity that benefits
two:
Example #1
Mrs. Bilderback, age 80,
gave $10,000 to Covenant House New Jersey for a
gift annuity. For the rest of her life, she will
receive a guaranteed annual income of $800 paid
in four quarterly installments of $200 each ($10,000
x 8.0% -- the annuity rate for her age).
Example #2
Mr. Littlefield,
aged 89, gave $10,000 to Covenant House New Jersey
for a gift annuity. For the rest of his life, he
will receive a guaranteed annual income of $1,100
paid in four quarterly installments of $275 each
($10,000 x 11.0% -- the annuity rate for his age).
| At Covenant House New Jersey, we
recommend that you consult with your attorney or tax
advisor for the various tax benefits and restrictions
that may apply to your specific situation. Covenant
House New Jersey does not provide legal or tax advice,
but our staff are always available to you and your
advisors to answer questions or to help arrange a planned
gift to Covenant House New Jersey. By remembering our
kids in this way you keep the promise of our Covenant
with future generations. |
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