Life-income gifts provide mutual benefits to both giver and receiver. They allow donors to enjoy the benefits of an increased return on their investment income while also providing significant financial support to Mission's patient care, research, and education programs. The various types of life-income gifts are listed below.
Charitable Gift Annuity - A donor makes a gift to Mission and in exchange receives a fixed annual dollar amount for life. The principal remaining at the donor's death passes to Mission Hospital.
Charitable Remainder Trust - A donor creates a trust, and income from the trust is paid to beneficiaries specified by the donor. Beneficiaries receive income for life or for a specified number of years, and at the end of the trust term the assets of the trust pass to Mission Hospitals. There are two types of trusts:
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Charitable Remainder Unitrust, in which assets can be added to the trust and the payout amount fluctuates.
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Charitable Remainder Annuity Trust is similar to a unitrust, except that beneficiaries of the annuity trust receive a fixed annual income and assets cannot be added to the trust once it has been established.
Pooled Income Fund - The fund pools gifts (cash and securities) from donors for investment purposes, and beneficiaries receive a proportionate share of the net income earned by the fund for life. Mission receives the principal value at the death of the income beneficiaries.
Here is an example of how a life-income gift is advantageous to the donor who seeks current income from his or her investments.
If a donor owns highly appreciated securities, such as a drug stock, the present yield probably is 2 percent or less. For example, $100,000 of Merck stock presently yields approximately $1,700 a year.
However, a 60-year-old individual can receive a 6.6% return for life by funding a Mission gift annuity with these securities. Donating $100,000 of Merck stock, for example, would allow a donor to increase his or her income from $1,700 to $6,600 per year-and also get a tax deduction. As a qualified charitable organization, Mission can sell shares of stock without any tax consequences. So a stock gift is a "win-win" situation for the donor as well as Mission.
Your life-income gift with Mission qualifies you for membership in our Legacy League, a recognition society of friends and patients who have remembered Mission in their estate plans.
We can meet with you and assist you, in confidence, in planning your will. You should also consult with your attorney, who can assist you in drafting your will provision based on your specific needs and desires.
For more information please call Melody Dunlop at 828-213-1022 or e-mail her.
