Serving young children with visual impairments
and their families since 1938

The Blind Childrens Center’s Heritage League Gift Annuity allows you to receive a guaranteed income for life, an immediate income tax deduction, and leave an everlasting philanthropic legacy to the Center. When you transfer cash or securities of at least $5,000, you will receive a fixed stream of income for life. After paying this income to you (and your spouse, if you choose), the remaining principal of the annuity becomes a permanent endowment fund. Payments to you are based on your age...the older you are the higher the rate. If you don’t need the income now, you can use the deferred plan; take the income tax deduction now and begin receiving payments when you reach a specific age. The tax advantages of this program are twofold. First, you receive the immediate income tax charitable deduction when you create your annuity. Second, the payments you receive may be partly an income tax-free return of principal or may be taxed at the lower capital gains rates. As you can see, these advantages increase the impact of the income you receive.

Example You establish an annuity trust with $100,000. You specify that you will receive an annual income of $6,000 from the trust, with the payments to be made quarterly. No matter how well or how poorly the trust’s investments perform, you will receive that fixed $6,000 each year (except in the highly unlikely event that the trust "goes broke").

4. Charitable Remainder Trusts
A charitable remainder unitrust allows you to make a substantial gift to The Blind Childrens Center and yet continue to receive income from the assets contributed. Your gift is administered separately as a trust. At the time the trust is created, you specify instructions to the trustee to pay you, or other designated beneficiary(ies), an annual percentage or a fixed amount. Depending upon the type of trust, you may either receive a fixed dollar amount each year (an annuity trust), or a fixed percentage of the fair market value of the trust’s assets, as those assets are revalued annually (a unitrust).

You create a unitrust to pay you 6% each year and initially contribute $100,000 to the trust. During the first year, you will receive $6,000 from the trust. If the trust’s assets are valued at $110,000 at the beginning of the second year, you will receive $6,600 ($110,000 x 6%) for the second year. This same calculation will be made each subsequent year. In addition to this income, you will receive a substantial charitable deduction in the year you create the trust. Thus, your effective yield on the trust will be much higher than the actual 6% payout specified, because of the tax advantages.

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