Establishing an Annuity Trust

Overview:

Establishing an annuity trust with Florida Christian College gives you an opportunity to make a gift to FCC, and at the same time continue receiving annual payments from the donated assets (either for life or for a period of years—up to 20). Because of this, annuity trusts are a great way to avoid capital gains taxes, help FCC, and provide a stable source of income for you or your beneficiaries.

Please email Bill Behrman or call him at 407-569-1164 if you have further questions about setting up an annuity trust with Florida Christian College .

A charitable remainder annuity trust pays a fixed amount (at least five percent of the fair market value of the trust assets when the trust is established) to you or your beneficiaries at least once a year . The payout is determined when you set up the trust, based on such factors as:

•  your age
•  the number of beneficiaries
•  your desired income and
•  the length of the trust term

If the trust earns more income than the agreed amount, the additional earnings are reinvested. If the earnings are less, withdrawals from the trust's principal make up the difference. Once the annuity trust is created, you may not make additional contributions to it.

You will receive an income tax deduction for the value of the charitable remainder interest in the trust at the time you set it up (calculated from tables based on your age), and you avoid capital gains taxes on the transfer of appreciated long-term assets such as real estate or securities. Because the assets are effectively removed from your estate, you also avoid estate taxes.

Features & Benefits

•  Opportunity to make a substantial gift to FCC while receiving life income
•  Fixed payout offers the security of guaranteed income
•  Can unlock appreciated assets for diversification or increased yield
•  Professional asset management
•  Can receive an attractive equivalent rate of return
•  Immediate tax deduction
•  Avoid capital gains taxes