Leave a Legacy Gifts That Provide You Income

Charitable Gift Annuities

A charitable gift annuity is one option that allows you to support Texas Children's while receiving fixed payments for life. This type of annuity involves a simple contract between you and Texas Children's Hospital. You agree to make a gift to Texas Children's and in return we agree to pay you (and someone else, if you choose) a fixed amount per year for the rest of your life.

Not only does a charitable gift annuity provide you with regular payments and allow us to advance our mission, it may also offer you a variety of tax benefits depending on how you fund your gift.

You may also fund your gift using an individual retirement account (IRA). If you are 70½ and older, you can make a one-time election of up to $53,000 to fund a gift annuity. While your gift does not qualify for an income tax deduction, it does escape income tax liability on the transfer and count toward all or part of your required minimum distributions.

Charitable Remainder Trusts

If you have built a sizeable estate and want ways to receive reliable payments, you may want to consider the advantages of setting up a charitable remainder trust. A charitable remainder trust provides you or other named people income each year for life or a period not exceeding 20 years from when you give to the trust.

Benefits of a charitable remainder trust include:

• Potential for a partial charitable income tax deduction
• Potential for increased income
• Up-front capital gains tax avoidance

There are two ways to receive payments with charitable remainder trusts:

The annuity trust pays you, each year, the same dollar amount you choose at the start. Your payments stay the same, regardless of fluctuations in trust investments.

The other option pays you, each year, a variable amount based on a fixed percentage of the fair market value of the trust assets. Your payment amount is recalculated annually. If the value of the trust increases, so do your payments. If the value decreases, so will your payments.

The information contained here was accurate at the time of posting. The information on this website is not intended as legal or tax advice. For such advice, please consult an attorney or tax advisor. References to tax rates include federal taxes only and are subject to change. State law may further impact your individual results.