Ruth, age 82, has stock worth $50,000 that she bought years ago for $10,000. She decides to donate her stock to fund a charitable gift annuity. She receives a payment rate of 7.7% a year. Her annual payment is $3,850, and she avoids paying taxes on $21,000 of her capital gains. She also receives an immediate income tax deduction of $26,113.

Sam and Jane, ages 82 and 78, want to support ADL’s work, but want to ensure they have sufficient income for the remainder of their lives. They donate $100,000 to ADL to establish a gift annuity that will benefit them for both of their lifetimes. In addition to an annual payment of $6,300 for as long as each of them lives, they will receive an immediate income tax deduction of approximately $42,028.

Evelyn and Paul, both age 72, would like to increase their retirement income. Paul also wants to make sure that Evelyn has more than enough income to live on even if she needs long-term care someday. After discussions with ADL staff and their advisors, Evelyn and Paul decided to create a 5% charitable remainder trust funded with $1 million in Paul’s highly appreciated company stock. Paul can rest assured knowing that Evelyn will have an additional $50,000 a year in retirement income. Additionally, they were able to remove $1 million from their taxable estate and avoid significant capital gains taxes.