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Life Income Gifts

Life income plans such as charitable gift annuities or charitable trusts allow you to provide for your personal financial needs or the needs of family members and loved ones while making a significant gift to Washington University.

Life Income Plans offer several benefits:
  • Payments for you and/or other individuals such as family
  • Charitable income tax deduction for a portion of your gift
  • Capital gain tax savings when you use appreciated assets such as stock or real estate
  • Partial tax-free return in some cases 
  • Estate tax savings
  • Gift to Washington University
 
 
 
 Please consult with your legal or tax advisor before making a charitable gift.
 

Charitable Gift Annuity

A charitable gift annuity is the most common life income plan. It may be funded with cash or publicly traded securities of $5,000 or more. In return, you and/or your spouse or designee receive lifetime fixed payments – a portion of which is usually tax-free. Your payment rate is based on the age or ages (if a second recipient is named) of the payment recipient(s) at the time the gift is made. When the gift annuity ends, the remaining assets are used by the university to support the school or program of your choice.  Benefits include: 
  • Payments for you and/or other individuals such as family
  • Charitable income tax deduction for a portion of your gift
  • Capital gain tax savings when you use appreciated securities to fund your gift
  • Partial tax-free return in most cases
  • Estate tax savings
  • Gift to Washington University
 

Gift Annuity Sample Payment Rates*

​ ​ONE LIFE ​ ​TWO LIVES
Age​ ​Fixed Rate Ages​ Fixed Rate​
60​ ​4.4% 60 & 60​ ​3.9%
65​ 4.7%​ 65 & 65​ ​4.2%
70​ ​5.1% ​70 & 70 ​4.6%
​75 ​5.8% 75 & 75​ ​5.0%
80​ ​6.8% 80 & 80​ ​5.7%
​85 ​7.8% ​85 & 85 ​6.7%
90 & over​ 9.0%​ 90​ & 90 8.2%​
​*Rates are subject to change
 
For information or a personal illustration, contact the Office of Planned Giving or call (314) 935-5373 or (800) 835-3503 or email plannedgiving@wustl.edu.
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Deferred Payment Gift Annuity

A deferred payment gift annuity is an attractive life income plan for individuals who would benefit from an immediate income tax deduction, and can wait to receive payments until a future date, e.g., until retirement. By deferring payments, you can receive a payment rate that is higher than the payment rate of an immediate-payment charitable gift annuity. Your payment rate is determined by your age and the amount of time your payments are deferred. The minimum gift amount is $5,000. You receive a charitable income tax deduction for a portion of your gift, and if you use appreciated securities to fund your gift, you will also receive capital gain tax savings. Benefits include:
  • Payments for you and/or other individuals such as family at a future point in time
  • Charitable income tax deduction at the time you make your gift for a portion of your gift 
  • Capital gain tax savings when you use appreciated securities to fund your gift
  • Partial tax-free return in most cases
  • Estate tax savings
  • Gift to Washington University
For information or a personal illustration, contact the Office of Planned Giving or call (314) 935-5373 or (800) 835-3503 or email plannedgiving@wustl.edu.
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Charitable Remainder Unitrust

A charitable gift strategy often used with gifts of appreciated securities and real estate is the charitable remainder unitrust.  Assets are transferred to the university, in this case as trustee of the unitrust. The unitrust makes income payments for the lifetime(s) of the donor(s). You may also continue the payments for a period of time to other individuals, such as your spouse, children or loved ones.  The payment is based on a percentage (such as 5 percent) of the market value of the trust assets as revalued annually. As a result, your payments will vary from year to year. When the payments end, the remaining assets are distributed to the university for the purpose(s) you specify in the trust.  Benefits include:
  • Payments for you and/or other individuals such as family
  • Charitable income tax deduction for a portion of your gift
  • Capital gain tax savings when you use appreciated assets such as stock or real estate
  • Partial tax-free return in some cases
  • Estate tax savings
  • Gift to Washington University
When serving as trustee, the university will draft the trust for review by you and your attorney and manage the trust with no administrative fees. The university will also complete all required filings with the IRS.
 
You may establish a charitable remainder unitrust with a minimum gift of $50,000, and may add to your unitrust at any time. Many donors use the unitrust to increase income from highly appreciated assets that have little or no yield. If your gift is appreciated securities or real estate, you do not pay capital gain tax on the sale of your property since the property is sold by the university as trustee. You also will receive a charitable income tax deduction on a portion of the value of your contribution.
 
For information or a personal illustration, contact the Office of Planned Giving or call (314) 935-5373 or (800) 835-3503 or email plannedgiving@wustl.edu
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Charitable Remainder Annuity Trust

Not nearly as common as the unitrust, a charitable remainder annuity trust may be established with the university serving as trustee. When serving as trustee, the university will draft and manage the trust with no administrative fees. The university will also complete all required filings with the IRS. The annuity trust may be funded with publicly traded stock or cash, and the trust makes fixed payments to you and/or your designee(s) for your lifetime(s). You may also continue the payments for a period of time to other individuals. The payment amount is based on the initial value of your gift resulting in a fixed payment. When the payments end, the principal is distributed to the university as you designate in the trust. Benefits include:
  • Payments for you and/or other individuals such as family
  • Charitable income tax deduction for a portion of your gift
  • Capital gain tax savings when you use appreciated assets such as stock or real estate
  • Partial tax-free return in some cases
  • Estate tax savings
  • Gift to Washington University
You can fund an annuity trust with a gift of $50,000 or more. While you may not add to an existing trust, you can establish new trusts. You will receive a charitable income-tax deduction for a portion of your donation the year you make your gift. If your gift is appreciated securities or real estate, you do not pay capital gain tax on the sale of your property since the property is sold by the university as trustee.
 
For information or a personal illustration, contact the Office of Planned Giving or call (314) 935-5373 or (800) 835-3503 or email plannedgiving@wustl.edu.
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