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PARKS &
WILDLIFE
FOUNDATION Phone:
605-773-4503
About the Foundation |
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CHARITABLE REMAINDER ANNUITY TRUST
A charitable remainder annuity trust ("annuity trust") is a gift plan defined by federal tax law that allows you to provide income to yourself or others for life or a term of years while making a generous gift to SD Parks and Wildlife Foundation.
As an annuity trust donor, you irrevocably transfer assets, usually cash or securities, to a trustee of your choice (for example, SD Parks and Wildlife Foundation or a bank trust department). During the trust's term, the trustee invests the trust's assets. Each year, the trustee provides a fixed dollar amount to one or more income beneficiaries named by you. The payments must be at least 5% of the trust's initial value and are made out of trust income, or trust principal if income is not adequate. Payments may be made annually, semiannually, or quarterly.
When the annuity trust term ends, the trust's principal passes to SD Parks and Wildlife Foundation, to be used for the purpose you designate.
EXAMPLE:
If you irrevocably transfer $50,000 in cash to an annuity trust that pays 5% of its initial value each year for the lifetime benefit of an individual, age 72,
BENEFITS INCLUDE:
1) You will qualify for a federal income tax deduction of approximately $26,674. Your deduction may vary modestly depending on the timing of your gift. Note that deductions for this and other gifts of cash and non-appreciated property will be limited to 50% of your adjusted gross income. You may, if necessary, take unused deductions of this kind over the next five years, subject to the same 50% limitation.
2) Your designated income beneficiary will receive fixed payments in quarterly installments totaling $2,500 each year for life.
3) Your estate may enjoy reduced probate costs and estate taxes.
4) You will provide generous support of SD Parks and Wildlife Foundation.
5) Your gift will benefit from expert asset management, provided by the same professionals who manage SD Parks and Wildlife Foundation's endowment.
November 26, 2002
These calculations are for illustration purposes only and should not be considered legal, accounting, or other professional advice. Your actual benefits may vary depending on the timing of the gift.
For more information see our Policy Manual.